Search
Generic filters
Filter by Categories
Accounting
Banking

Finance




Recourse Leverage


The leverage in which the so-called recourse borrowing is used. It is backed by collateral posted by the borrower. The lender (provider of leverage) can collect from (i.e., have recourse to) the borrower (user of leverage) and/ or borrower’s assets in case of default. Financial leverage is a recourse leverage, as it provides for a direct claim on all the assets, not just those being financed (by leverage). Examples include derivatives, synthetic products, and mark-to-market (MTM) repos on cash investments.



ABC
Finance, as a field of knowledge, is substantially wide-ranging and virtually encompasses everything in the realm of corporate finance, financial management, ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*