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Leverage in sentence

1018 examples of Leverage in a sentence

While no two financial crises are identical, all tend to share some telltale symptoms: a significant slowdown in economic growth and exports, the unwinding of asset-price booms, growing current-account and fiscal deficits, rising leverage, and a reduction or outright reversal in capital inflows.
According to this plainly naive approach, the negotiation process operates according to its own embedded logic, independent of considerations of power, coercion, and leverage.
Financial leverage drove global growth onward for almost another 30 years.
The search for higher yields drove investors and speculators to developing countries, where the inflows increased leverage, propped up equity prices, and in some cases supported a commodity price boom.
Corporate sectors in developing countries, having increased their leverage with capital inflows during the post-2008 period, are particularly vulnerable.
They could also give Macron more leverage to push through his reforms, by running candidates in national and EU-wide elections.
Others (think Cyprus, Iceland, Ireland, the UK, and the US) resorted to unsustainable surges in leverage among financial institutions to fund private-sector activities, sometimes almost irrespective of underlying fundamentals.
Accordingly, even countries with sound balance sheets and manageable leverage have experienced a growth slowdown.
Given these trends, the search for more robust growth models will take much longer and be more complicated than many recognize – especially as the world economy pivots away from unfettered globalization and high levels of leverage.
Thus, in gross terms, the leverage effects are larger than currently reported.
Market participants also know that the Fed needs them to leverage its policy influence and deliver on its mandate, which, in recent years, has rightly been broadened in practice to incorporate the goal of financial stability.
For their part, developed-country governments want private investors to fill the gap, arguing that scarce public funds could be used more effectively to leverage profit-seeking green finance.
Greece first tried and failed to use a referendum to impose its preferences on its creditors, which then used their superior leverage to render the referendum’s outcome moot.
Consider China’s high leverage ratio, which many argue will be a key factor in causing a crisis.
The bankers and traders of the latest crisis responded rationally to compensation and bonus schemes that allowed them to assume a lot of leverage and ensured large bonuses, but that were almost guaranteed to bankrupt a large number of financial institutions in the end.
The old model of private partnerships – in which partners had an incentive to monitor each other to avoid reckless investments – gave way to one of public companies aggressively competing with each other and with commercial banks to achieve ever-rising profitability, which was achievable only with reckless levels of leverage.
If financial institutions do not have enough capital, and shareholders don’t have enough of their own skin in the game, they will push CEOs and bankers to take on too much leverage and risks, because their own net worth is not at stake.
In addition to the tough new regime of personal accountability, the commission would supplement the Basel standards on bank capital with a tight leverage ratio.
A Cold War-style confrontation and containment policy from the West will be met with strong resistance from the Chinese, whose global leverage, particularly in finance, cannot be ignored.
Excess capacity fuels downward pressure on prices, with negative externalities on indebted firms, which experience an increase in their real (inflation-adjusted) leverage.
Russia clearly believes that the current tight world energy market and high prices give it enough leverage over the West to maintain its current approach.
Compare this to the “one belt, one road” initiative, which aims to boost China’s financial leverage over other countries through trade and investment, while revising the maritime status quo, by establishing a Chinese presence in areas like the Indian Ocean.
By jointly appealing to all countries to “avoid unilateral actions” in the South China Sea, they implicitly criticized China’s construction of artificial islands there, which they rightly regard as a blatant attempt to secure leverage in territorial disputes – and gain control over sea lanes of “critical importance” for the Indo-Pacific region.
Another is to leverage connections in order to secure no-bid contracts or to purchase state assets for a pittance.
Indeed, there is increasing worry about deflation, which increases leverage and the burden of debt levels that are already too high.
To salvage the nuclear deal and advance other diplomatic goals, the EU can leverage its economic relationship with Iran.
Countries needed to open their economies at a sensible pace; leverage global technology and demand; specialize in tradable sectors; pursue a lot of investment (some 30% of GDP); and promote foreign direct investment, with appropriate provisions for knowledge transfer.
Rock-bottom borrowing costs also spur excessive reliance on leverage, weakening the will to undertake reforms needed to boost potential growth – and further exacerbating the economy’s vulnerability to a shift in interest rates or investor sentiment.
And governments are not alone; the private sector, too, relied on rosy assumptions to justify imprudently high levels of leverage.
Likewise, in order to reduce financial-sector risks (including excessive leverage and shadow banking), regulation of banking and insurance have been consolidated under the new China Banking and Insurance Regulatory Commission.
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