Deleverage: meaning, definitions and examples
๐ณ
deleverage
[ หdiหหlษv.ษr.ษชdส ]
financial context
To deleverage means to reduce the level of debt or reliance on borrowed funds within a financial context. This process often involves either reducing expenditure, selling off assets, or using cash flow to pay down debt. Companies or individuals may choose to deleverage to improve their financial stability and reduce risk.
Synonyms
pay down, reduce debt, unload liabilities.
Examples of usage
- The company needs to deleverage to attract new investors.
- After the financial crisis, many firms chose to deleverage to stabilize their operations.
- Personal finance experts often recommend deleveraging to achieve long-term financial health.
Translations
Translations of the word "deleverage" in other languages:
๐ต๐น desalavancagem
๐ฎ๐ณ เคกเฅเคฒเคฟเคตเคฐเฅเค
๐ฉ๐ช Entschuldung
๐ฎ๐ฉ deleverage
๐บ๐ฆ ะดะตะฒะฐะปัะฒะฐััั
๐ต๐ฑ de-leverage
๐ฏ๐ต ใใฌใใฌใใธ
๐ซ๐ท dรฉsendettement
๐ช๐ธ desapalancamiento
๐น๐ท deleveraging
๐ฐ๐ท ๋๋ ๋ฒ๋ฆฌ์ง
๐ธ๐ฆ ุฎูุถ ุงูุฑุงูุนุฉ ุงูู ุงููุฉ
๐จ๐ฟ deleveraging
๐ธ๐ฐ deleveraging
๐จ๐ณ ๅปๆ ๆ
๐ธ๐ฎ deleveraging
๐ฎ๐ธ deleveraging
๐ฐ๐ฟ ะดะตะฒะฐะปัะฒะฐัะธั
๐ฌ๐ช แแแแแแแ แแแ
๐ฆ๐ฟ deleveraging
๐ฒ๐ฝ desapalancamiento
Etymology
The term 'deleverage' originated in the finance sector, particularly in the late 20th century, as financial markets became increasingly complex. The prefix 'de-' indicates reduction or reversal, while 'leverage' relates to the use of borrowed capital for investment. Leverage allows businesses to expand operations beyond their existing capital, but excessive leverage can lead to financial instability. The 2008 financial crisis brought the concept of deleveraging to the forefront as companies and individuals faced significant debt burdens. Since then, the term has gained traction in economic discussions, exploring its implications for both macroeconomic stability and individual financial practices. Overall, deleveraging has become an essential strategy for managing debt risks and fostering sustainable economic growth.