Practical Law Glossary Item 4-382-9863 (Approx. 2 pages)
Glossary
Leveraged
In the context of finance, the relationship of debt to equity in a borrower's capital structure. The higher the amount of the borrower's debt, the more highly leveraged the borrower is said to be. Lenders to a highly leveraged borrower take increased credit risk on their loan and typically charge the borrower a higher margin on the loan to reflect the increased risk.