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Yeah, erm, no, just NO. Unless we're talking about A-grade corporate or government debt. Which isn't guaranteed, of course, but at least its a relatively sensi

Yeah, erm, no, just NO. Unless we're talking about A-grade corporate or government debt. Which isn't guaranteed, of course, but at least its a relatively sensible area to dabble in if you want to play the game. Anything else, whether "junk bonds" or any of the more "exotic" items listed in this blog post are the sort of thing you should not touch with the proverbial bargepole. Why ? Because there is a reason those sort of debts are debts... Remember the 2008 financial crash ? Remember what was a significant part of the cause ? Yup. That's right. Initially it was packages of "harmless" mortgage-backed securities and collateralised debt obligations (CDOs). Then people got greedy and started re-packaging sub-prime loans. And the rest, as we know, is history. So, unless you are genuinely, honestly and absolutely certain that you are willing to loose the money you have "invested", which, let's be honest, the majority of people cannot afford to loose the money ... just steer well clear.

melenaboija 3y ago
I am not sure your comment adds anything other than what your gut says. This is simply a market with expectations, you can take it or leave it. A completely different topic is the morality and the role of regulators in it.
- lcnPylGDnU4H9OF 3y ago
  > This article is for anyone who may be interested in getting into the debt collection industry and wants to learn some basic information about buying debt. It seems to me their comment was also written for "anyone who may be interested in getting into the debt collection industry". Hard to see how it's off-topic. One might argue that such people "should already know" these things if they're interested but how are they going to know if nobody says it?
vitruvian_man 3y ago
People got greedy and started re-packaging sub-prime loans due to financial engineering enabled by the ratings agencies, which were greatly influenced by the erroneous notion that "housing always goes up" and incentive to collect for each CDO rating they opined upon.
medvezhenok 3y ago
There are all sorts of esoteric debt markets (and claim markets). Not too long ago, people were selling claims on FTX deposits (a sort of debt) for pennies on the dollar since they assumed the money was gone... now the estimated recovery rate might go as high as 30-50 cents on the dollar, so whoever bought that debt claim will make out like a bandit.

melenaboija 3y ago

I am not sure your comment adds anything other than what your gut says. This is simply a market with expectations, you can take it or leave it. A completely different topic is the morality and the role of regulators in it.

lcnPylGDnU4H9OF 3y ago
> This article is for anyone who may be interested in getting into the debt collection industry and wants to learn some basic information about buying debt. It seems to me their comment was also written for "anyone who may be interested in getting into the debt collection industry". Hard to see how it's off-topic. One might argue that such people "should already know" these things if they're interested but how are they going to know if nobody says it?

vitruvian_man 3y ago

People got greedy and started re-packaging sub-prime loans due to financial engineering enabled by the ratings agencies, which were greatly influenced by the erroneous notion that "housing always goes up" and incentive to collect for each CDO rating they opined upon.

medvezhenok 3y ago

There are all sorts of esoteric debt markets (and claim markets). Not too long ago, people were selling claims on FTX deposits (a sort of debt) for pennies on the dollar since they assumed the money was gone... now the estimated recovery rate might go as high as 30-50 cents on the dollar, so whoever bought that debt claim will make out like a bandit.