In the finance industry, leveraged names refer to companies or assets that have a significant amount of debt relative to their equity. These entities are also referred to as highly leveraged or overleveraged. The term “leverage” refers to the use of borrowed funds to invest in assets or securities. When a company or individual uses leverage, it magnifies the potential return on investment, but also increases the risk of losses. Therefore, highly leveraged companies or assets are considered riskier investments.