What are leveraged investments?
Leverage investments are investments that are offered with more than 1 capital owner. They are in the the category of structured finantial investments and may be tricky to understand at their full extend.
Normaly they are associated with a loan or financial colateral which leverages the risk of the global investment from on point of view, but make it much more difficult to return the investment, once you need to return on more than 1 capital owner. The most protected owner of the capital will call upfront fee’s and pay-back to enssure his part of the return, which reduces the oportunity for responsible and ethical investment. This type of investment were majorily bu the Fed of Greenspan and infected the world with debdt!
Be very carefull and sceptical about leveraged investments.
Originally published at https://www.quora.com.
