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deleveraging

deleveraging

7 8.5
The process of reducing debt by paying off loans or selling things you own
  • noun
  • /ˌdiːˈlɛvərɪdʒɪŋ/
  • Specialized
translation icon : desapalancamiento
  • Many companies are focusing on deleveraging to strengthen their balance sheets and reduce financial risks.
  • deleveraging process

If we go through a massive period of deleveraging, the pain that we're seeing in the markets could stay around longer.

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Examples

  • At this stage, it is difficult to forecast when the ongoing deleveraging will end.

    Blog text (9)
  • If we go through a massive period of deleveraging, the pain that we're seeing in the markets could stay around longer.

  • And that was part of the massive deleveraging in in the financial markets.

  • Research suggests that usually a deleveraging cycle can last up to a decade.

    Blog text (20)
  • We're in the process of very painful deleveraging in advanced economies.

    Blog text (20)
  • With Europe on a path to considerable deleveraging (as is clear below)...

    Blog text (6)
  • Due to industry wide deleveraging, we saw a huge spike in stock market correlation on Monday.

  • Analysts say not to worry; this is a necessary period of public and private deleveraging, and once it's over, growth will resume. If only things were that simple.

    Academic text (2011)
  • By contrast, consumers today are in a gloomy period of long-term deleveraging.

    Academic text (2010)
  • Interestingly, Japan's ongoing experience is consistent with America's own prior episode of deleveraging, which took place after the Great Depression.

    Blog text (9)

Synonyms

amortization
vsdeleveraging
  • Specialized
5 7.2

To reduce a debt or an asset's value little by little with regular payments

aims to cut debt quickly by paying loans or selling assets to improve stability

Antonyms

60 2.3

Getting money from a person or bank that you must pay back with interest

leveraging
  • Specialized
7.7

Using borrowed money to make bigger profits and raise risk

Surface Forms

deleveraging singular
deleveragings plural

Morphology

deleveraging = deleverage (semi-transparent) = de + leverage + ing

Adding '-ing' to the verb 'deleverage' to name the process is a standard and fully predictable English pattern.

Etymology

The word deleveraging comes from the prefix de- meaning 'remove' and leverage, which comes from lever, a simple bar used to lift things. In finance, leverage means using borrowed money to 'lift' returns, so deleveraging is the process of removing that 'lever' and reducing debt by paying loans or selling assets.