โ ExplanationBuildingInvesting & Markets โบ Alternative Investments
The Hidden Leverage: Why NAV Loans are the Quiet Risk in Your Retirement Fund
Private equity firms are increasingly borrowing against their entire portfolios to pay out dividends, a practice known as NAV lending. While it boosts short-term returns, it creates a layer of 'leverage on leverage' that everyday investors rarely see until market volatility strikes.
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