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Explain "buying debt"
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05-20-2007, 11:53 PM
Evan
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Join Date: Jun 2004
Location: startupping
Posts: 14,351
Re: Explain \"buying debt\"
It's a more complicated form of lending someone money. Basically though, you're lending someone money.
In your example, he bought $1 of face value debt for $0.40. This means he bought a promise to be paid $1 for $0.40.
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