answersLogoWhite

0

Deleveraging is the "un-winding" of debt. Firms use Leveraging "borrowing" to finance expansion and increase their returns. However when a firm fears it may default its obligations etc, it uses deleveraging to reduce its overall risk profile. This is done by selling on debt and also by sometimes selling on illiquid assets usually at a considerable discount. This however has an overall negative outcome as widespread deleveraging will eventually lead to downward pressure on asset and security prices

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

When was The Unwinding Hours created?

The Unwinding Hours was created in 2008.


When was The Unwinding Cable Car created?

The Unwinding Cable Car was created in 2007.


What does unwinding mean?

In a general sense, unwinding refers to the process of relaxing or de-stressing. In a more technical context, unwinding can refer to the reversal of a specific action or process, such as unwinding a DNA double helix during replication or unwinding a financial position in trading. The term can also be used in the context of unwinding a contract or agreement, meaning to cancel or reverse its effects.


What is unwinding of silk threads from cocoon called?

reeling


Is unwind an adjective?

No, it isn't. It is a verb. The participles (unwinding, unwound) can be adjectives.


Is unwinding real?

Unwinding can refer to different things, such as relaxing or decompressing after a stressful day. It is a real concept that involves taking time to unwind and destress in order to improve mental and emotional well-being.


What type of bonds are broken during the unwinding stage of replication?

hydrogen in bases


What actors and actresses appeared in Unwinding It - 1915?

The cast of Unwinding It - 1915 includes: Elmer Booth as Roderick Edith Borella Max Davidson as Max Fay Tincher as Fay Margery Wilson as Margy Chester Withey


What enzyme is responsible for unzipping the helix?

DNA Helicase. - an enzyme, is responsible for unwinding and unzipping the double helix.


What are some popular slow piano jazz songs that are perfect for relaxation and unwinding?

Some popular slow piano jazz songs perfect for relaxation and unwinding include "Blue in Green" by Bill Evans, "Misty" by Erroll Garner, and "Round Midnight" by Thelonious Monk.


What enzymes unwinding DNA double helix by breaking the hydrogen bonds to separate the complementary strands?

Helicase


What enzyme unravels the DNA helix?

DNA Helicase. - an enzyme, is responsible for unwinding and unzipping the double helix.