Lending in the context of investing - UBS

as collateral – to obtain relatively cheap financing. The loan can be used to fund further acquisitions of securities in a portfolio (see Fig. 1) or alternatively the purchase of real assets, goods or services. 1 Illustration of a leveraged investment portfolio Fig. 1 -100 -50 0 50 100 150 200 Original portfolio Portfolio with loan (re-invested) ................
................