to lever
- verb
- /ˈlɛvər/
- Specialized
- Investors often choose to lever their resources to maximize returns on their investments.
A common real world example of this effect is levered ETFs.
- A common real world example of this effect is levered ETFs.
- So they can just lever up, lever up, lever up, go into these risk assets like stocks.
- The Motorin finds that private equity owned firms don't default more frequently than similarly levered, publicly listed firms.
- What I think this is is a massively levered bet because at some point, so they're buying Bitcoin.
Examples
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A financial system that is highly levered, for example, purely with borrowed money, will crash when things turn down, as the need to liquidate large positions causes prices to fall, which feeds back on itself.
Blog text (31) -
So they can just lever up, lever up, lever up, go into these risk assets like stocks.
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Then they can lever a tremendous amount and it makes complete perfect math sense.
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Somewhat diabolically, the editor is trying to use the reader's own guilty conscience to lever them into accepting this comedy of errors.
Blog text (23) -
They were levered 40x!
Blog text (12) -
I think that "leverage" might be a better overarching blame category than the entire class of "derivatives," though some derivatives do permit one to make levered bets.
Blog text (31) -
By deciding to lever their assets, the company aimed to increase its profitability during the market upturn.
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Many businesses lever borrowed funds to expand operations, hoping to gain higher profits from their investments.
Synonyms
To use something you have to get more success
To give money to a business to help it grow
Phrasal Verbs
Compounds
- Specialized
A system of two or more levers joined so force on one is passed and increased by the others
- Specialized
A device that keeps a door or safe closed until someone lifts the levers to the right heights
- Specialized
A flat metal piece inside a lever lock that a key lifts to open the lock
How Leveraged
Surface Forms
Etymology
Lever in finance uses the same image from Latin levare, 'to raise'. To 'lever' an investment is to use borrowed money to 'raise' the possible gain, like using a physical lever to lift something heavier than you could alone.