ENGLISH
REFERENCE

leveraged

adj.
C1 Advanced US //ˈɫɛvɝɪdʒd// UK //lˈiːvəɹɪdʒd// lever·aged

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.


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.

Synonyms
Usage

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

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