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Leveraged Loan |
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Leveraged Loan What Does Leveraged Loan Mean? Leveraged loans are loans extended to companies or individuals that already have considerable amounts of debt. Lenders consider that these loans carry a higher risk of default, and as a result, a leveraged loan is more costly to the borrower in the form of the need to pay higher interest rates. Investopedia explains Leveraged Loan Leveraged loans for companies or individuals with debt tend to have higher interest rates than do typical loans. These rates reflect the higher level of risk involved in issuing the loan. In business, leveraged loans often are used in leveraged buyouts (LBOs) of other companies. Related Terms: How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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