Leveraged model portfolios

Leverage multiplies whatever a portfolio does. It lifts gains, it deepens losses, and the loan costs interest either way. It also brings a risk the unleveraged investor never faces: the margin call. If the collateral falls far enough, the lender sells at that day's price, and the loss becomes permanent. This instrument shows what leverage would have done to the seven model portfolios over the past decade. You choose the assumptions: the credit drawn, the maximum loan to value, the spread over the base rate, and how often the loan resets. Each leveraged portfolio sits beside its standard, unleveraged peer. This is not a recommendation. It is a record of how these seven portfolios would have behaved under the assumptions you choose, and nothing more.