to overleverage
1
8.8
- verb
- /ˌoʊvərˈlɛvərɪdʒ/
- Specialized
:
sobregirar
- "We thought that many banks and brokerages were massively overleveraged, with very risky assets, and that a small decline in the assets would wipe out the equity and impair the debt," Paulson says.
Examples
-
If a business overleverages itself, it may struggle to pay off its debts during an economic downturn.
-
However, the owner had overleveraged his mortgage and put no money into the house, which was, quite frankly, a dump.
Blog text (18) -
Leading up to the housing collapse, Lehman executives overleveraged the investment bank, far more than any other large financial institution.
Blog text (31) -
Capital has been eroded, and banks are way overleveraged, in part because of excessive risk-taking.
Blog text (3) -
"My client thinks Alma's way overleveraged, that they've taken on projects they can't handle just so they can claim they're eating at the same table with the big boys.
Fiction book (1990) -
It was a bad thing if you were overleveraged (I would never buy a house with less than 20% down, for example), and/or were moronic enough to buy after a decade of bullishness in prices.
Blog text (6) -
Many companies overleverage their finances, which can lead to bankruptcy when profits decline.
-
Startups often overleverage by relying too heavily on loans to fund expansion without solid revenue streams.
Antonyms
How Indebted
Surface Forms
Morphology
Etymology
Overleverage starts with over- meaning 'too much' and leverage, from lever, a long bar used 'to lift' heavy things, and in finance leverage means using 'borrowed money' to try to lift your gains. So, to overleverage is to use too much borrowed money and risk falling or losing everything if things go wrong.