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Consider the hypothetical example of a money manager who leverages up his clients' money with lots of debt, then invests the bulked-up total in high-yielding but risky assets, such as dubious mortgage-backed securities.
That one leverages up 200%.
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The fund could leverage up to £200m from other investors.
Banks don't face these constraints and instead leverage up with illiquid, opaque, long-term loans.
"The leveraging up and buying back stock thing is done," Mr. Peltz said in an interview.
It would involve leveraging up, which might put [AB] InBev off".
EU sources have repeatedly said the €440bn fund could be "leveraged up" fivefold.
Don't Run Before You Can Walk Diamond Food was leveraging up to buy Pringles, assuming $850 million in debt.
Schäuble remains enraged by the suggestion of Tim Geithner, the US treasury secretary, that the EFSF be "leveraged" up to €2tn.
Alternatively, if instead UK households start to leverage up further we could have a further boom in prices".
Like the banks, hedge funds have been leveraging up their exposures to markets.This activity is splendidly profitable, as long as markets behave themselves.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com