English Reference

Word

leveraged

Phoneticslever·aged

US/ˈɫɛvɝɪdʒd/

UK/lˈiːvəɹɪdʒd/

Definition

adj. describing a company or investment that uses borrowed money to try and increase profits. It can also describe something that is used to its full advantage.

adj. characterised by the use of borrowed capital to increase the potential return of an investment; also describes a position or asset utilised to maximum advantage. Often used as a participial adjective in business contexts.

Examples

“The company is highly leveraged and owes a lot of money.”

“The firm used a leveraged buyout to acquire its competitor, using the target company's assets as collateral for the loan.”

“In a highly leveraged environment, even a minor downturn in market value can lead to significant capital erosion, as the debt obligations remain fixed while asset prices fluctuate.”

Examples

simple

“The company is highly leveraged and owes a lot of money.”

contextual

“The firm used a leveraged buyout to acquire its competitor, using the target company's assets as collateral for the loan.”

complex

“In a highly leveraged environment, even a minor downturn in market value can lead to significant capital erosion, as the debt obligations remain fixed while asset prices fluctuate.”

Usage

Often follows a linking verb like 'is' or 'remains', or precedes a noun such as 'buyout' or 'position'.

Real-World Examples

“In the midst of a trade war with the US, the prime minister leveraged his connections in global finance to invite some of the world's biggest investors to Canada.”
BBC News · 13 Sept 2026
“According to the Politico report, he leveraged one of Trump’s weaknesses: a desire to harm Harvard University.”
Ars Technica · 21 Sept 2026

Domain

Finance

This entry

Level
C1 · Advanced
Frequency
Occasional
Updated

Scan code

englishreference.com/q/leveraged

English Reference