What are multiple levels of leverage? i.e. double and triple leverage?

Discussion in 'Loans & Mortgage Brokers' started by Ema24, 6th Sep, 2013.

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  1. Ema24

    Ema24 Member

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    I know what leverage is but unsure how double and triple leverage work?
     
    Ema24, 6th Sep, 2013
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  2. GregReid

    GregReid Well-Known Member

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    I would envisage it would be a case similar to what Storm Financial investors experienced.
    They raised loans against their properties, used it to buy into the share market/managed funds and at the same time used margin loans to further increase their assets holdings secured against those shares.

    In that way the original funds are debt raised and then with the assets purchased, raised further debt.

    I am not sure I have ever seen a formal definition.
    Greg
     
    GregReid, 6th Oct, 2013
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  3. Blueeye

    Blueeye Member

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    That's probably the best description I've heard thanks Greg!
     
    Blueeye, 10th Oct, 2013
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