What is the meaning of deleverage?
Deleveraging is when a company or individual attempts to decrease its total financial leverage. In other words, deleveraging is the reduction of debt and the opposite of leveraging. The most direct way for an entity to deleverage is to immediately pay off any existing debts and obligations on its balance sheet.
What is the synonyms of leverage?
In this page you can discover 21 synonyms, antonyms, idiomatic expressions, and related words for leverage, like: influence, lift, support, advantage, backing, power, capability, exploit, force, consolidate and weight.
Why do companies deleverage?
Deleveraging strengthens balance sheets. Firms with toxic debt can face a substantial blow to their balance sheets as the market for those fixed-income investments collapses.
What is the difference between deleveraging and recession?
Government regulation and fiscal policy Deleveraging is responsible for the continuing fall in the prices of both physical capital and financial assets after the initial market downturn. It is part of the process that leads the economy to recession and the bottom of the leverage cycle.
Is De lever a word?
verb (used with object), de·lev·er·aged, de·lev·er·ag·ing. to reduce the debt of: He drastically deleveraged the company to make it profitable. an instance of this: The economic crisis has forced a deleverage.
What is the opposite of leverage?
Antonyms. unfavorableness inexpediency penalty sell take away. render furnish provide. leverage (English)
What does leveraging mean in business?
Leverage is the amount of debt a company has in its mix of debt and equity (its capital structure). A company with more debt than average for its industry is said to be highly leveraged.
How does a government deleverage?
To deleverage, one needs to raise cash to pay debt, either from raising capital or selling assets or both.
Why do banks deleverage?
Banking sector’s deleveraging Supply factors are related to banks’ insufficient balance sheet capacity to hold assets. This can arise from capital shortfalls or funding strains – or both. Banks can address capital shortfalls and funding strains by adjusting the asset and/or liability side of the balance sheet.
What is the synonym of exacerbated?
aggravate, make worse, worsen, inflame, compound. intensify, increase, heighten, magnify, add to, amplify, augment. make matters worse, compound the problem. informal add fuel to the fire, add fuel to the flames, fan the flames, rub salt in the wounds, add insult to injury.