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What is a Leveraged Loan?

A leveraged loan is a commercial loan that is generally created by a few participants, and packaged and offered by one or several investment banks.

Leveraged loans are typically targeted at companies that already have a significant amount of debt and may be limited in their options to access capital elsewhere. They are considered on the higher end of the risk spectrum.

Keywords: risk tolerance, leverage, risk, loans, investment banks, leveraged instruments,