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Can Retail Investors buy a company's debt or bonds that is about to Default?

• Is it Possible to buy a company's bonds that is about to be default and the company is in bankruptcy and then negotiate with the company to get a better value for the bond that you bought? example. Retail Investor A just bought Company XYZ's senior note at a face value of 500K but a par value of 15.5%, these bonds are rated D. So the Investor only spent 77.5K on the bonds Can the Retail Investor then call up the Company and negotiate these bonds for a better value. Lets assume that the Retail Investor can take a hair cut of 40% and that the company can buy back these bonds at 60% par value. the company buys back the bonds for 300K, the retail investor only spent 77.5K on the bonds. profiting 222.5K. Can a retail Investor do all that? Lets say that the retail investor has a brokerage account valued at 1Million Thanks

• Answer:

  Why would a company that is bankrupt and probabbly going to defalt on it's bonds want to buy them back from you for more than the 0 they are planning on paying ! ...... bond holders are only safer than stocks because they get paid before stockholders if they are actually bankrupt getting zero first isnt really any better than getting zero second ! lol ...... but no they are not going to give you any better deal than the bankruptcy court would give you, and the court wouldn't allow that anyhow. Once they are actually in bankruptcy like your example it's out of their hands and it's up to the court .... who is also not going to pay you more than everyone else