High levels of leverage can lead to forced selling and a liquidity crisis, which turns an ordinary downturn into a crash.
I fear that I would make bad decisions while working at
a higher level of leverage.
Treasury bond futures contracts provide
the highest level of leverage against bond value changes.You can trade a contract worth $ 100,000 of Treasury bonds with a several hundred dollar margin deposit.
CMBS lenders now offer higher and
higher levels of leverage to make deals — especially as prices for apartment properties rise compared to rents...