Financial Engineering=Leverage?

Its an often used term to describe one of the main drivers of PE returns pre-crisis. When people refer to "financial engineering" I assume what they mean is the use of leverage (debt), right? ...that it was high. its a term used a lot by people and just wanna make sure I understand it correctly.

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Juwanna MannNot with respect to pre-crisis PE returns. OP was asking specifically about what it meant when brought up in that contest.

Even in that narrow context there's some subtlety that's worth examining (debt terms/covenants/structure, PIK and mezz and cashflow priority, etc); it's not like FE just means "add as much leverage as possible."

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