> If interest rates go up, demand falls and you're left in a highly leveraged position that amplifies your losses.
There is a reason why debt is called “leverage” - it leveraged investment returns up when your the exit works out.
But it also leverages return losses down when the exit doesn’t work out.
> If interest rates go up, demand falls and you're left in a highly leveraged position that amplifies your losses.
There is a reason why debt is called “leverage” - it leveraged investment returns up when your the exit works out.
But it also leverages return losses down when the exit doesn’t work out.