Is there a finance term meaning "opposite of leverage"? Insurance maybe? (in sense that you own an asset "more" than 100% by insuring it)
Conversation
Replying to
Sure, for a debt-financed vehicle like a house, equity-holder (homeowner) is leveraged > 1, while debt-holder (bank) is leveraged < 1
1
Replying to
I think I'm trying to get at an even stronger notion of "opposite of leverage" in the spirit of antifragile
Replying to
yeah, then "hedge". Hedges have beta < 0, risk-free has beta = 0, debt-like assets have 0 < beta < 1, risky/ leveraged assets have beta > 1

