Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Leveraged Loan

Updated on 2023-08-29T11:58:36.644981Z

It is a type of loan that is extended to firms or individuals already having a poor credit history and/or considerable amounts of debt. These loans are substantially riskier than traditional loans and, as such, lenders usually demand a higher interest rate to signify the bigger risk.

Leveraged loans are used to support mergers and acquisitions deals, to refinance the existing debt, to change a company’s balance sheet and for general corporate purposes.