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Payoff of the debt becomes like an option because it is floored at 0, but there is a chance they get something out of it. And it's not abuse of terminology, it'
by ackbar03 5y ago
Payoff of the debt becomes like an option because it is floored at 0, but there is a chance they get something out of it. And it's not abuse of terminology, it's the technical way to describe that characteristic of distressed debt