Levered portfolio

Levered portfolio

Investment at least partially financed by borrowing.

Leveraged Portfolio

A portfolio that includes at least some securities that were bought with borrowed money. A leveraged portfolio is risky because the securities may result in a loss, which would leave the investor liable to repay the borrowed capital. However, if the securities result in a gain, the investor has essentially made a profit without using his/her own money.
References in periodicals archive ?
We use the excess return of the levered portfolio in order to find out whether the mimicking portfolios capture common risk factors in returns associated with debt levels.
The HML factor showed a statistically significant negative relationship with the levered portfolios, which is validated also at the full sample level.
The value factor has a stable negative relationship with the returns of the levered portfolios, indicating that investors penalize low-value and high-levered companies by requiring higher returns.
The findings for the eight levered portfolios are not different from those of the four portfolio analysis and arc not presented here due to space considerations.
A fully levered portfolio will be limited to a minimum interest rate duration of -0.