Junk bonds, with ratings just below corporate grade, are one step above distressed securities.

And for any individual, distressed securities are best kept a small part of the portfolio.

There are hedge funds that deal in distressed securities.

Now federal regulators are suggesting that tighter rules may be required on how companies value distressed securities.

But some experts in distressed securities said that the impact might be limited going forward.

Quadrangle also has a fund that focuses on distressed securities.

Some have bought distressed securities at premium prices to bolster yields.

His view of safety does not rule out buying distressed securities at a discount.

The most common distressed securities are bonds and bank debt.

The United States has the most developed market for distressed securities.