Which form of private equity investing focuses on fixed-income securities of public companies that are...

Distressed debt investing focuses on the debt securities of companies experiencing financial difficulty, restructuring, default risk, or bankruptcy pressure. Investors buy these securities at deep discounts because the issuer is troubled, then seek returns through recovery, restructuring, asset sales, or improved credit conditions. This is different from a leveraged buyout, where investors acquire control of a company using significant borrowed funds. Growth capital provides financing to expanding companies, usually without taking full control. Late-stage venture capital supports private companies that are closer to maturity or public listing. Since the question specifically refers to fixed-income securities of public companies in financial trouble, distressed debt is the correct private equity-related strategy.