leveraged loans

leveraged loans definition - finance
Speculative-grade or unrated loans that are priced above LIBOR by approximately 2 percentage points or higher. Leveraged loans have a greater chance of defaulting, so investors demand higher interest rate payments in exchange for investing. See also LIBOR.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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