# leveraged

/ˈɫɛvɝɪdʒd/ (US) · /lˈiːvəɹɪdʒd/ (UK) · CEFR C1 · Adjective

Source: https://englishreference.com/word/leveraged
Updated: 2026-05-08

## Definition

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.

For teachers: 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.

## Usage notes

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

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