Reverse leverage


 

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Reverse leverage

The investment of borrowed money where the return fails to match the interest payable on the loan.

Reverse leverage

Occurs when the interest on borrowings exceeds the return on investment of the funds that were borrowed.



Reverse leverage

Similar Matches

Unleveraged program

Unleveraged program

The use of borrowed funds to finance less than 50% of a purchase of assets. In a leveraged program borrowed funds are used to finance more than 50%.


Debt leverage

Debt leverage

Amplification of the return earned on equity when an investment or firm is financed partially with borrowed money.


Optimum Leverage Ratio

Optimum Leverage Ratio

The borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level.


Target Leverage Ratio

Target Leverage Ratio

The ratio of the market value of debt to the total market value of the firm that management seeks to maintain.


Leveraged company

Leveraged company

A company that has debt in its capital structure.


Further Suggestions

Unleveraged required return
Net benefit to leverage factor
leverage on a warrant
Leveraged equity
Highly leveraged transaction (HLT)
leveraged buyout
Reverse leveraged buyout
Leveraged required return
Homemade leverage
Financial leverage
Leveraged recapitalization
Financial leverage clientele
Unleveraged beta
Leveraged investment company
Leveraged lease
Operating leverage
Leverage
Leverage clientele
leverage
Leverage
Leveraged stock


 
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