Leveraged

An investors' group is attempting a leveraged buy-out of the firm.

Since 2008, banks have kept more capital on hand to protect against a downturn, and their balance sheets are less leveraged now than they were in 2007.

Leveraged E.T.F.s use tools like swaps, futures and other derivatives to amplify bets on an asset. But the aggressive use of leverage by the funds named in the letter has raised red flags, Niko Gallogly writes.

So-called perps allow traders to make highly leveraged bets, up to 100-to-1 on some crypto exchanges, to boost their returns on market moves.