They pile more debt, and more risk of default, on businesses that the equity firms leveraged when they bought them in the first place. |
Interestingly, he also finds that the outcomes vary more for highly leveraged firms. |
For a system so leveraged and commanded by speculative finance, there is little room for error. |
The consumers are stretched thin, and most of the companies are highly leveraged. |
At the highly leveraged and exposed Wall Street firms, the cost of insurance is even cheaper. |
Forex also allows highly leveraged trading with low margin requirements relative to its equity counterparts. |