Kohlberg Kravis Roberts , LittleJohn and HSBC (nyse: HBC - news - people ) are just three of the latest to jump into the market with new distressed-debt funds, lining up for what is expected to be a pickup in corporate bond defaults even as other veterans of the distressed-debt market complain about a lack of opportunities.

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The number of distressed sales also affects the size of the foreclosure discount, which in May was reported to be about 20%, according to Goldman.

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