DELEVERAGE Meaning and
Definition
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Deleverage is a financial term that refers to the process of reducing or decreasing the amount of debt held by an individual, company, or institution. It involves the deliberate reduction of leverage, which refers to the use of borrowed money to finance investments or operations.
The process of deleveraging typically occurs when there is a high level of indebtedness and the entity seeks to reduce its risk exposure and financial vulnerabilities. This may be prompted by various factors such as economic downturns, declining revenues, or a desire to improve financial health and stability.
Deleveraging often involves strategies such as selling assets, using cash flow to pay off debt, or negotiating with creditors for more favorable terms. These actions result in a decrease in the overall debt burden and can potentially improve the entity's creditworthiness.
The objectives of deleveraging can vary depending on the specific circumstances. It may be pursued to lower interest payments, improve liquidity, reduce the financial strain caused by debt obligations, or increase the capacity to invest in other areas.
While deleveraging can help alleviate financial stress and enhance long-term stability, it may also have implications for growth and profitability. By reducing leverage, entities may have less access to capital for expansion or investment opportunities, and this cautious approach could potentially limit their ability to take on additional risks.
Overall, deleveraging is a strategic process that aims to lessen the reliance on borrowed funds and reduce financial vulnerability, ultimately leading to a healthier and stronger financial position.
Common Misspellings for DELEVERAGE
Etymology of DELEVERAGE
The term "deleverage" is derived from two words: "de" and "leverage".
The word "leverage" originated from the French word "lever", meaning "to lift". It entered the English language in the mid-16th century with the sense of using a lever or mechanical advantage to increase force or achieve a desired effect. Over time, "leverage" broadened its meaning to include the concept of using various means to achieve an advantage, particularly in financial contexts.
The prefix "de-", meaning "to reverse" or "remove", is added to "leverage" to create "deleverage". This prefix indicates the act of reducing or getting rid of the leverage or debt.
Therefore, the etymology of "deleverage" suggests the action of reducing or eliminating debt, often used in the context of reducing financial risk or adjusting a company's capital structure.
Conjugate verb Deleverage
CONDITIONAL
I
would deleverage
you
would deleverage
he/she/it
would deleverage
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would deleverage
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would deleverage
CONDITIONAL CONTINUOUS
I
would be deleveraging
you
would be deleveraging
he/she/it
would be deleveraging
we
would be deleveraging
they
would be deleveraging
CONDITIONAL PERFECT
I
would have deleverage
you
would have deleverage
he/she/it
would have deleverage
we
would have deleverage
they
would have deleverage
CONDITIONAL PERFECT CONTINUOUS
I
would have been deleveraging
you
would have been deleveraging
he/she/it
would have been deleveraging
we
would have been deleveraging
they
would have been deleveraging
FUTURE
I
will deleverage
you
will deleverage
he/she/it
will deleverage
we
will deleverage
they
will deleverage
FUTURE CONTINUOUS
I
will be deleveraging
you
will be deleveraging
he/she/it
will be deleveraging
we
will be deleveraging
they
will be deleveraging
FUTURE PERFECT
I
will have deleveraged
you
will have deleveraged
he/she/it
will have deleveraged
we
will have deleveraged
they
will have deleveraged
FUTURE PERFECT CONTINUOUS
I
will have been deleveraging
you
will have been deleveraging
he/she/it
will have been deleveraging
we
will have been deleveraging
they
will have been deleveraging
IMPERATIVE
you
deleverage
we
let´s deleverage
to deleverage
PAST
I
deleveraged
you
deleveraged
he/she/it
deleveraged
we
deleveraged
they
deleveraged
PAST CONTINUOUS
I
was deleveraging
you
were deleveraging
he/she/it
was deleveraging
we
were deleveraging
they
were deleveraging
PAST PARTICIPLE
deleveraged
PAST PERFECT
I
had deleveraged
you
had deleveraged
he/she/it
had deleveraged
we
had deleveraged
they
had deleveraged
PAST PERFECT CONTINUOUS
I
had been deleveraging
you
had been deleveraging
he/she/it
had been deleveraging
we
had been deleveraging
they
had been deleveraging
PRESENT
I
deleverage
you
deleverage
he/she/it
deleverages
we
deleverage
they
deleverage
PRESENT CONTINUOUS
I
am deleveraging
you
are deleveraging
he/she/it
is deleveraging
we
are deleveraging
they
are deleveraging
PRESENT PARTICIPLE
deleveraging
PRESENT PERFECT
I
have deleveraged
you
have deleveraged
he/she/it
has deleveraged
we
have deleveraged
they
have deleveraged
PRESENT PERFECT CONTINUOUS
I
have been deleveraging
you
have been deleveraging
he/she/it
has been deleveraging
we
have been deleveraging
they
have been deleveraging
