reverse leverage

Definitions (2)

1. Negative cash flow. The situation that occurs when the total yield on a cash investment is less than the interest rate on borrowed funds - indicates that financing is too costly.
2. Borrowing money at a higher interest rate than the return obtained by investing that money; here also called negative carry.

Related Terms

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
negative leverage leverage