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Leverage in sentence

1018 examples of Leverage in a sentence

And the huge increase in leverage – non-financial debt has grown from less than 150% of GDP in 2008 to more than 250% today – might well lead, as People’s Bank Governor Zhou Xiaochuan has just warned, to a “Minsky moment” of evaporating confidence and severe financial stress.
Indeed, with the 19th National Congress drawing to a close, the Chinese authorities may deliberately engineer a slowdown as part of a strategy to limit further leverage growth.
Instead of wasting time on fear-based strategies, the international community must leverage human and financial resources to ensure fact-based, concerted, collective action.
Here the key issue is leverage, or how much banks are allowed to borrow relative to their equity, and the temptation that policymakers face to allow banks to borrow more, particularly when times are good and asset prices are rising.
Big banks’ executives often want to increase their institutions’ leverage, typically because they have various forms of guarantee – in particular, deposit insurance and access to central-bank financing on advantageous terms.
Moreover, the build-up of risk in the financial system that accompanies higher leverage is both hard to measure and likely to materialize only after a few years (for example, after a governor’s term of office has expired).
De Gregorio’s views differ from those of many of his colleagues in other countries, because he sees clearly the risks in allowing banks to become bigger and apply what he calls “clever” strategies that require a great deal of leverage.
Higher leverage creates macroeconomic risk – not least for fiscal balances when implicit guarantees must be honored.
Growth based on high leverage typically proves to be illusory.
At that time, the large amounts of capital that were suddenly pulled out of the stock market poured into real estate, with the increased leverage triggering a surge in urban housing prices.
The home country must put a cap on leverage, limit acceptable liquidity and funding practices, and have a resolution regime for winding up complex financial institutions.
A financial and economic crisis caused by too much private-sector debt and leverage led to a massive re-leveraging of the public sector in order to prevent Great Depression 2.0.
Policymakers can develop solutions that leverage immediate challenges to guide the shift toward a more sustainable, inclusive future.
Private-sector leverage declined and public-sector leverage reached – and exceeded – sustainable limits, with Greece being only the most extreme example.
In other words, we should leverage imbalances of one kind to redress imbalances of the other kind.”
But some critics, like Fed Governor Jeremy Stein, argue that macro-pru policies to control credit and leverage – such as limits on loan-to-value ratios for mortgages, bigger capital buffers for banks that extend risky loans, and tighter underwriting standards – may not work.
Not only are they untested, but restricting leverage in some parts of the banking system would merely cause the liquidity from zero rates to flow to other parts of it, while trying to restrict leverage entirely would simply drive the liquidity into the less-regulated shadow banking system.
As a result, China’s new attempts to gain increased leverage from globalization are not without serious challenges of their own.
And, as I have witnessed several times, if the IMF staff ever do become too candid in their criticism of powerful members, the target governments use their leverage to water down the public communiqués issued by the Board.
But we should realize that there are fundamental causes for the imbalance on the US side as well, such as over-consumption financed by excessive leverage and high budget deficits.
So what should developing countries do, aside from maintaining sound macroeconomic policies, curbing excessive domestic financial leverage, and attempting to isolate themselves from volatile capital inflows?
The only question is how to leverage its location more significantly so that money arrives more readily and with a far smaller risk premium attached.
He argues that much of the apparent growth in value added has in fact been illusory, based on increased leverage, excess trading, and banks writing deep out-of-the-money options – for example, credit-default swaps (a $60 trillion market in 2007).
In the case of Europe, only now are banks being pushed to deal decisively with their capital shortfalls, leverage problems, and residual weak assets.
This global group of leaders from government, business, academia, and civil society was brought together to brainstorm new funding mechanisms that could leverage existing commitments and motivate countries to increase their own spending on education.
Enabling institutions like FINDETER will be critical to localizing the SDG-implementation process to leverage the efforts of local governments elsewhere.
A five-times leverage would enable the IMF to increase either lending to member countries or investments in infrastructure via multilateral development banks by at least $5 trillion.
Moreover, multilateral development banks could leverage their equity by borrowing in capital markets.
But converting underwater “non-recourse” mortgage loans, where only the house is at risk, into so-called “recourse liabilities,” for which nonpayment would have consequences for all of a borrower’s assets, could address this concern, while simultaneously tempering America’s culture of leverage with a much greater sense of responsibility.
As a result, Syria is most likely to become an arena in which regional powers, with the backing of interested outsiders, compete for leverage.
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