This article focus to discuss on Explain Risks of Leveraged Debt. Here explain Leveraged Debt in financial point of view. Leveraged debt can significantly increase the investment’s returns; however, this may also increase your losses. When depending on borrowed capital, it is important to thoroughly research the investment, because if it fails you will still be held accountable for the debts you owe, which can often always be quite substantial. In the event that you’ll be unable to pay these, you may find by yourself filing for bankruptcy.