leveraged

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Leveraged

Describing the amount of debt that has been used to finance activities. A company with much more debt than equity is generally called "highly leveraged." Many analysts consider too much leverage to be unhealthy, but many firms use leverage in order to expand operations.

leveraged

Of, relating to, or being an investment situation for which borrowed funds are used. A highly leveraged investor or firm is in a relatively risky position if interest rates rise or if the investment yields are disappointingly low.

References in periodicals archive ?

Many leveraged transactions are underwritten with reliance on the imputed value of a business ("enterprise value"), which often exhibits a high degree of volatility.

GUIDANCE ON RISK MANAGEMENT OF LEVERAGED FINANCING

TRA 86 also contains provisions to curb the systematic borrowing from life insurance policies to pay premiums, the cornerstone of leveraged life.

Funding SERPS: how to reduce the pain

Banks and securities firms have demanded more information and tightened their credit terms, especially vis-a-vis highly leveraged institutions.

Statements to the Congress

A leveraged company is no longer playing to the constituency of analysts, institutional investors, or stockholders - and this frees management to produce cash flow to meet the capital requirements of its core business as well as its debt service.

Making buyouts work: public policy and private management

The types of oversight under discussion include proposals intended to provide creditors, investors, or the general public with additional information on risk-taking by highly leveraged institutions.

Statement to the Congress

Lenders to leveraged enterprises have been, in large part, those that can most easily absorb losses without major systemic consequences.