leveraged capital

USAGE SUMMARY

The phrase "leveraged capital" is correct and usable in written English.
It is typically used in financial contexts to refer to capital that is obtained through borrowing or using debt to increase the potential return on investment. Example: "The company utilized leveraged capital to finance its expansion, aiming for higher returns on its investments."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

11 human-written examples

"If you've acquired property with highly leveraged capital, you've got a problem," he said.

The New York Times

"You're seeing the opening of the spigots of financing in a fairly big way," said Peter Toal, Barclays' head of leveraged capital markets in the Americas.

The New York Times

To an insolvency professional, this restructuring looks somewhat like a "prepackaged" bankruptcy, in which creditors agree to a new, less leveraged capital structure negotiated over a period of months.

The Economist

But experience of economic volatility makes Votorantim congenitally conservative: a more leveraged capital structure would be "premature" while Brazil's stabilisation is incomplete and world markets are so uncertain, says Mr Ermirio de Moraes Neto.

The Economist

To be sure, Lehman, Fannie and Freddie succumbed because of their outlandishly leveraged capital structure.

Forbes

Sinclair has a highly leveraged capital structure, but its cash flow appears adequate to service its debt.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

46 human-written examples

Forcing bond insurers to hold exposure to credit derivatives while ceding good liabilities like municipal bond insurance would swamp their already over-leveraged capital bases, but save municipal bond investors, taxpayers and local governments from further losses, Spitzer said.

Forbes

The plan, which Buffett floated to the companies last week, would effectively give the Omaha billionaire control over the companies' good books and leave them to deal with the bad stuff: credit-derivatives exposure that threatens to swamp their over-leveraged capital bases.

Forbes

The researchers estimate that Berkshire, on average, leveraged its capital by 60%, significantly boosting the company's return.

The Economist

Our key issue is that Intu remains highly leveraged and capital consumptive, and we see better value elsewhere.

The Guardian - Business

He paints himself into scenes from power balladry to dance-pop, and leveraged his capital to accrue guest stars who'd make them slightly less ridiculous.

The Guardian - Music

Expert writing Tips

Best practice

When discussing financial strategies, clarify the specific debt-to-equity ratio or leverage multiple to provide a more precise understanding of the risk involved with "leveraged capital".

Common error

Avoid portraying "leveraged capital" as solely beneficial; always balance the potential for higher returns with the increased risk of losses due to debt obligations.

Linguistic Context

The phrase "leveraged capital" functions as a noun phrase where "leveraged" modifies "capital". It is commonly used to describe financial resources obtained through debt or borrowing, as evidenced by Ludwig examples.

Expression frequency: Uncommon

Frequent in

News & Media

50%

Formal & Business

30%

Wiki

20%

Less common in

Science

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "leveraged capital" refers to capital acquired through debt or borrowing to amplify returns. As Ludwig AI points out, the phrase is grammatically correct and suitable for use in professional contexts such as finance, business, and news reporting. However, when using this term, it's important to present a balanced view, acknowledging both the potential benefits and the risks associated with increased debt. Alternatives like "debt-financed capital" or "borrowed capital" can provide clarity or simplicity depending on the audience and context.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

debt-financed capital

Replaces "leveraged" with a more explicit description of the financing method.

borrowed capital

Offers a simpler and more direct way of stating that the capital is acquired through borrowing.

geared capital

Uses "geared" as a synonym for "leveraged", common in British English.

highly leveraged funds

Focuses on the funds themselves having a high degree of leverage.

capital with high debt ratio

Highlights the debt-to-equity ratio as a key characteristic.

capital supported by debt

Emphasizes the supportive role of debt in relation to the capital.

capital enhanced by debt

Highlights the enhancement aspect of using debt.

debt-amplified capital

Uses "amplified" to convey the increase in potential returns due to debt.

capital raised through debt

Focuses on the action of raising capital by using debt.

capital acquired via borrowing

Replaces "leveraged" with a more formal expression.

FAQs

What does "leveraged capital" mean?

"Leveraged capital" refers to capital that is obtained through borrowing or using debt to increase the potential return on investment. It involves using borrowed funds to amplify the outcome of an investment or business venture.

How is "leveraged capital" used in a sentence?

You might say, "The company utilized "leveraged capital" to finance its expansion, aiming for higher returns on its investments."

What are some alternatives to "leveraged capital"?

Alternatives include "debt-financed capital", "borrowed capital", or "geared capital", depending on the context.

What are the risks associated with using "leveraged capital"?

While "leveraged capital" can amplify returns, it also increases the risk of losses, as the borrower is obligated to repay the debt regardless of the investment's performance. High leverage can lead to financial distress if investments do not perform as expected.