Most people think of lending as a "primary" activity—you give money, they pay you back. But the real meat is often in the . Buying loans at a discount allows for two types of gains:
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A higher effective interest rate and a profit when the full loan is repaid. buying loans at a discount
Achieve "pull-to-par"—where you collect the full principal and interest over time, significantly boosting your effective yield. Option 2: Strategy-Focused (Investor Blog/Newsletter)
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Buying a loan at a discount isn't just about finding a "deal"—it's a calculated move on risk vs. reward. When you buy a loan for €90 that has a face value of €100, that 10% gap represents your potential additional return.
Did you know you can buy someone else's loan for less than they owe? It’s called buying at a discount. Immediate cash. Most people think of lending as a "primary"
Because you bought the debt for "pennies on the dollar," any recovery toward the full principal represents pure profit.