deleverage

Definition

To reduce the amount of debt used to finance the purchase of assets, often done by selling off assets or closing out investment positions.

Etymology

Derived from the prefix 'de-', meaning 'to reverse or undo', combined with 'leverage', which comes from the Old French 'levier' (to raise/lift). It entered financial jargon to specifically describe the process of reducing debt ratios.

In the news

The article uses the term to describe how institutional investors may be forced to quickly sell assets to pay off debts, potentially causing volatility in the yen. This is highlighted as a major risk factor for financial markets.

Analysis-Yen’s changing fortunes might finally be spooking the bears

WNWN-FM

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