What is leveraged finance?

How can a private equity firm undertake one of those huge LBOs you hear about, while leaving the target company with the borrowed debt that has to be repaid?

Leveraged Finance, of course.

In this video, master explainer Paddy Hirsch details how these transactions work, what kind of debt is entailed, and who, at the end of the day, is left holding the bag (of money).

More videos from Paddy:

What is a leveraged loan? http://www.leveragedloan.com/primer/#...

What is a high yield bond?
http://www.highyieldbond.com/primer/#...

More on Paddy (nice specs btw, Paddy):
http://www.paddyhirsch.com/

Check out LCD's awesome, free Leveraged Loan and High Yield Bond Primers!

www.leveragedloan.com

www.highyieldbond.com