1. Negative cash flow. The situation that occurs when the total yield on a cash investment is less than the interest rate on borrowed funds - indicates that financing is too costly.
2. Borrowing money at a higher interest rate than the return obtained by investing that money; here also called negative carry.
Related information about reverse leverage:
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Situation in which financial benefits from ownership accrue at a lower rate than the interest rate paid for money; also called negative leverage.
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