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Reverse leverage |
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Reverse leverageThe investment of borrowed money where the return fails to match the interest payable on the loan.Reverse leverageOccurs when the interest on borrowings exceeds the return on investment of the funds that were borrowed.Reverse leverage Similar MatchesLeveraged investment companyLeveraged investment companyAn investment company or mutual fund entitled to borrow capital for its operations. Also, an investment company that issues both income shares and capital shares. Homemade leverageHomemade leverageIdea that as long as individuals borrow (or lend) on the same terms as the firm, they can duplicate the effects of corporate leverage on their own. Thus, if levered firms are priced too high, rational investors will simply borrow on personal accounts to buy shares in unlevered firms. Target Leverage RatioTarget Leverage RatioThe ratio of the market value of debt to the total market value of the firm that management seeks to maintain. LeverageLeverageIn the US, the ratio of a company's long term debt, typically bonds and preferred stock, to its equity in its capital structure. The greater the long term debt, the greater the leverage. Unleveraged required returnUnleveraged required returnThe required return on an investment when the investment is financed entirely by required return (i.e., no required return). Further SuggestionsReverse leveraged buyoutLeveraged company Leveraged stock Optimum Leverage Ratio Operating leverage Leveraged required return Financial leverage clientele Leveraged equity Debt leverage Leveraged lease Leverage Leveraged recapitalization leveraged buyout Unleveraged program Leverage Unleveraged beta Leverage clientele Net benefit to leverage factor leverage on a warrant Highly leveraged transaction (HLT) Financial leverage |
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