An investor needs cash now and is willing to sell their note for less than it's worth.
Interest rates have risen, making older, lower-rate loans less attractive at "par" value. buying loans at a discount
Buying a loan at a discount isn't just about finding a "deal"—it's a calculated move on risk vs. reward. When you buy a loan for €90 that has a face value of €100, that 10% gap represents your potential additional return. An investor needs cash now and is willing
Because you bought the debt for "pennies on the dollar," any recovery toward the full principal represents pure profit. buying loans at a discount