Deleverage: meaning, definitions and examples

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deleverage

 

[ หŒdiหหˆlษ›v.ษ™r.ษชdส’ ]

Verb
Context #1 | Verb

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:

๐Ÿ‡ต๐Ÿ‡น desalavancagem

๐Ÿ‡ฎ๐Ÿ‡ณ เคกเฅ‡เคฒเคฟเคตเคฐเฅ‡เคœ

๐Ÿ‡ฉ๐Ÿ‡ช Entschuldung

๐Ÿ‡ฎ๐Ÿ‡ฉ deleverage

๐Ÿ‡บ๐Ÿ‡ฆ ะดะตะฒะฐะปัŒะฒะฐั†ั–ั

๐Ÿ‡ต๐Ÿ‡ฑ de-leverage

๐Ÿ‡ฏ๐Ÿ‡ต ใƒ‡ใƒฌใƒใƒฌใƒƒใ‚ธ

๐Ÿ‡ซ๐Ÿ‡ท dรฉsendettement

๐Ÿ‡ช๐Ÿ‡ธ desapalancamiento

๐Ÿ‡น๐Ÿ‡ท deleveraging

๐Ÿ‡ฐ๐Ÿ‡ท ๋””๋ ˆ๋ฒ„๋ฆฌ์ง€

๐Ÿ‡ธ๐Ÿ‡ฆ ุฎูุถ ุงู„ุฑุงูุนุฉ ุงู„ู…ุงู„ูŠุฉ

๐Ÿ‡จ๐Ÿ‡ฟ deleveraging

๐Ÿ‡ธ๐Ÿ‡ฐ deleveraging

๐Ÿ‡จ๐Ÿ‡ณ ๅŽปๆ ๆ†

๐Ÿ‡ธ๐Ÿ‡ฎ deleveraging

๐Ÿ‡ฎ๐Ÿ‡ธ deleveraging

๐Ÿ‡ฐ๐Ÿ‡ฟ ะดะตะฒะฐะปัŒะฒะฐั†ะธั

๐Ÿ‡ฌ๐Ÿ‡ช แƒ“แƒ”แƒšแƒ˜แƒ•แƒ”แƒ แƒแƒŸแƒ˜

๐Ÿ‡ฆ๐Ÿ‡ฟ deleveraging

๐Ÿ‡ฒ๐Ÿ‡ฝ 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.