Buying loans at a discount—often referred to as purchasing "distressed debt" or secondary market notes—allows investors to acquire debt for less than its face value. This can occur when a lender wants to liquidate their position quickly or when a borrower’s financial situation has worsened.
Interest rates have risen, making older, lower-rate loans less attractive at "par" value. buying loans at a discount
An investor needs cash now and is willing to sell their note for less than it's worth. Buying loans at a discount—often referred to as