deleverage

Besides, the positive impact of higher margins is likely to be at least partially offset by deleveraging.

However, this deleveraging is often delayed and protracted.

"But general inflationary pressure is not high in this type of environment of continued slow growth and deleveraging, " he said.

Being in a deleveraging and nearly out of ammunition is a very difficult position to be in.

After the collapse of a bubble of historical size, deleveraging by the private sector is likely to be substantial in scale and duration.

"We've seen a very big deleveraging from managers, " said the head of one large prime brokerage.

Their relative position has strengthened while that of Western peers was undermined by market turmoil and deleveraging.

The first is motive: the world is deleveraging, ie, trying to reduce the ratio of its debts to income.

After all, households are deleveraging and, notwithstanding a blip-up in activity recently, the days of homes-as-ATMs are over.

"Deleveraging an overleveraged system is always dangerous, " said Credit Suisse, in a recent note to clients.

Deleveraging by one institution was more likely to provoke sell-offs elsewhere.

Practically speaking, the only balance sheet capable of absorbing the deleveraging is the US government one.

As to be expected, carry trades continued to be unwound as deleveraging carried into FX.

Spending retrenchment, deleveraging and saving are the only sustainable options for America's zombie consumers.

If the ongoing deleveraging of the US economy weakened US consumption, the economy might go into a deep recession.

IT IS ugly, but deleveraging is the word of the moment.

"Deleveraging an overleveraged system is always dangerous, " notes Credit Suisse.

In continuing with a bolder policy approach to offset chaotic economic deleveraging, governments should be clear about four principles.

Deleveraging will probably continue. Even if it does not, another such period of rising leverage seems inconceivable.

Medium-term, investors are worried about the poor state of government finances, deleveraging of households and the financial sector.

s emergency sale to Bank of America Corp. last weekend was an example of the perniciousness and unpredictability of deleveraging.

It is at the early stages of a long and painful deleveraging and restructuring.

Managing the deleveraging will be very hard, particularly without internal exchange rate flexibility.

How the private sector deleveraging is to occur, without mishap, is far from clear.

The stakes are very high, and a disorderly deleveraging will be worse than an orderly one, even if the orderly one isn't perfect.

How to deal with an age of deleveraging without blighting the lives of millions of people though long-term unemployment.

The deleveraging of banks may be inevitable and healthy, but the disappearance of the securitisation market is not.

This process, known as deleveraging, requires consumption to grow more slowly than income in coming years.

A quick glance suggests that achieving either of these two outcomes will be far more difficult than in the previous deleveraging episode.

First, there must be a credible programme for what Americans call "deleveraging" .

Our problem is not a credit boom, but that the deleveraging process has not fully ended.

Credit spreads, the extra interest lenders charge corporate borrowers, are likely to remain elevated until deleveraging runs its course.

At a time of private sector deleveraging, it is helpful.

This form of "deleveraging" , some believe, should be of little concern.

They are trying to save more and pay down debt, a process called deleveraging.

Assigning the odds of further deleveraging is not the same as gauging its likely economic impact.

The US economy is severely constrained by household and financial sector deleveraging and possibly by a permanent fall in potential growth.

The early victims of this deleveraging are borrowers in emerging markets.

So the fourth, most important and most depressing lesson for the great deleveraging is that of realism.

The slow and painful deleveraging of balance sheets and income-challenged households, financial institutions and governments will continue.

The ways in which financial "deleveraging" feeds into the broader economy are exemplified by the car industry.

Whether or not talk of depression is borne out, defaults, distressed debt and deleveraging will be on the rise.

Some predict that Europe could go the way of Japan's glacial deleveraging and take a decade or more to clean up its banks.

Sixty percent of the world GDP is deleveraging, which slows down growth. That's a long process, just as credit bubbles took time to build.

Still, he adds, 'this deleveraging is absolutely essential. We're clearly overleveraged as a society. '

The second left the non-bank private sector with a debt overhang and deleveraging.

Companies and individuals, rather than adding debt to leverage corporate and family balance sheets, are deleveraging by cutting debt.

It is difficult to predict whether the euro can withstand the social tensions created by this deleveraging of public sector finances.

These arrangements would stop the concentrated deleveraging that is one of the main causes of the crisis.

The deleveraging of the private sector is underway but it is far from complete.

In sum, deleveraging is the right starting point for a healthier financial system.

Much more could also be done to hasten deleveraging of the private sector and strengthen the financial system.

The overhang of debt makes deleveraging inevitable. But it has hardly begun.

But he ventured that "balance-sheets and deleveraging issues" may be stronger head winds than expected.

The risk to the US economy remains to the downside, especially given high unemployment and ongoing private sector deleveraging.

At least three things need to happen to bring the deleveraging process to an end, and they're hard to do at once.

Encouraging an orderly deleveraging of balance sheets, both household and financial, is one route.

Additionally, the US private sector is now deleveraging.

There is also more deleveraging to come; in the case of Korea, from small and medium-sized enterprises and consumers.

With household debt still at 120% of disposable income, deleveraging could go on for some time.

With household debt still at 129% of disposable income, deleveraging could go on for some time.

But he ventured that "balance-sheets and deleveraging issues" may be stronger than expected.

DEBT reduction, or deleveraging as it is known in the inelegant argot of economists, is a painful process.

Instead, I regard the most likely course for the world economy as continued deleveraging by businesses and households for some time.

I would agree that the effect of deleveraging in the US private sector should not be underestimated.

Monetary and fiscal easing should make this less painful, but this deleveraging still has years to go.

Any and all attempts to prevent deleveraging and to prop up asset prices will cause years to be added to the healing process.

DELEVERAGING is an ugly word for a painful process.

The global bogeymen of deleveraging and frozen credit markets are more fearsome in South Korea than most of Asia.

But the credit bubble that helped fuel spending has now burst, deleveraging has a way to go, and many consumers vow to boost their savings.

Then, with the financial crisis and the bursting of asset bubbles, came household deleveraging and fiscal leveraging.

The Fed must continue to soften the impact of banks' deleveraging while keeping future inflation expectations in check.

The "deleveraging" , as household savings grow and the financial-services industry sheds debt, will mean that people spend less.

With banks still deleveraging and home prices still declining, consumer spending will remain under pressure for many months yet.

Financial history suggests that such deleveraging rarely occurs smoothly, or without having a knock-on effect on the wider economy.

New trading rules, due to go into effect at the end of 2010, will begin the process of deleveraging the dealers.

Thus investors are faced with numerous uncertainties: is the world facing a bout of extended deleveraging that will drag prices down?

Loans go sour, the deleveraging begins, demand for the assets declines further and prices drop even more.

Then when the bubble bursts, deleveraging affects asset categories indiscriminately.

Deleveraging in Western economies will be less painful if savings-rich Asian countries and oil-exporters inject more capital.

We are in the midst of a deleveraging, we are nearly out of ammunition and we are at each other's throats.

Meanwhile, the debtor lands are strapped by austerity, budget cutting, and deleveraging.

In other words, it thinks subdued, deleveraging consumers are the new norm.

When the private sector is deleveraging and interest rates are low, banks normally struggle to make adequate profits.

The question is how that is to be compatible with rapid deleveraging and expanded spending.

And the bigger the earnings downgrades between now and then, the greater the reliance on deleveraging to plug the gap.

Western countries are over-banked and households must begin an extremely long and painful process of deleveraging.

Deleveraging is "just starting" , says Charles Roxburgh of McKinsey.

Pretty hefty, but it pales next to the risk to spending from household deleveraging.

Whatever is done about the financial system, "deleveraging" is the order of the day (see chart).

Pretty hefty, but it pales next to the risk to spending from household deleveraging.

Whatever is done about the financial system, "deleveraging" is the order of the day (see chart).

First, can they stop deleveraging from gaining momentum and wrecking their economies?

But the flight from debt and the dash for cash, inelegantly called "deleveraging" , means a bludgeoning for demand.

Deleveraging started with securities tied to subprime mortgages, where defaults started rising rapidly in 2006.

Can the deleveraging of the US and other high-income countries occur smoothly, without high inflation?

At issue is a 'systemic deleveraging, ' or the paying down of massive debts this country has accumulated in recent decades.

The advent of Basel III could add significantly to the value of their RWAs, requiring either deleveraging or an increased capital base.

Fed and Treasury officials have identified the disease. It's called deleveraging.

Global deleveraging is prompting investors to dump riskier assets.

The huge amount of deleveraging that is necessary after the housing bubble of the early 2000s can only be accomplished over time.

When the bubble burst, the resulting crash diet of deleveraging caused a massive recessionary shock.

The painfully slow process of deleveraging continues to handicap the prospect of recovery.

He says the "continued deleveraging of banks" will influence returns at hedge funds more than the new rules.

Whatever happens, the required deleveraging will take years.

That means deleveraging must occur through increased saving.

So is getting through the deleveraging ahead in anything like one piece.

Third, the best way to ease the pain of deleveraging is with an export-led boom.

Such deleveraging almost certainly means a longer period of large fiscal deficits than almost anybody now imagines.

Meanwhile, in the very near future, a prolonged period of deleveraging could hurt the financial services sector.

The Bush administration's rescue plan aims to arrest this deleveraging cycle.

Demand is restrained by private and, soon, public deleveraging.

The move aims to create a new levy that will halt further devastation caused by the deleveraging hurricane.

Widespread deleveraging is thus still the order of the day.

First, global deleveraging is having a bigger impact on Germany than on the US or Britain.

Behind this lies deleveraging by US households, in particular.

Otherwise, their deleveraging will happen too fast.

Deleveraging also means a reduction in lending activity.

Of course, poor policy and the dynamics of post-crisis deleveraging played a part.

I think the process of deleveraging is going to continue.

This vicious circle is what some call the "paradox of deleveraging. "

The big risk for the wider euro-zone economy is that the banks will do so in part by deleveraging, or cutting their lending.

Deleveraging has, indeed, slowed.

'The whole world is deleveraging, but China needs to leverage up, ' Ms. Wu said.

Deleveraging, the paying down of excess debt, has barely begun.

And the pain will continue: a careful look at the numbers suggests that the process of deleveraging has barely begun.

Without more action, though, deleveraging could drag on for a long time.

The low interest-rate environment helps the process of deleveraging.

Nor will they avert further deleveraging.

The real-estate comedown reflects the way South Korea is unwinding debt amid the global deleveraging.

To achieve the deleveraging scenario, a 150% improvement will be required.

In other words, Irish GDP could have shrunk by 22%t just from this private sector deleveraging.

Most remote of all is an end to deleveraging.

Today there is a lot of talk about "deleveraging, " yet the data shows that deleveraging has barely begun.

This is the reality behind the euphemism, "deleveraging" .

These are not showing any sign of wanting to spend more: households are busy deleveraging, and companies are happy to hoard their cash.

The process of deleveraging has barely started.

That is due, more than anything, to the painful process of deleveraging, as banks and borrowers work off a mountain of debt.

As debt shifts from the private sector to the government, so does the onus of deleveraging.

The process of deleveraging kept rich-world inflation subdued (chart 2).

If these are ruled out, what might support demand, while deleveraging continued?

The key point here is the deleveraging.

That is because the necessary deleveraging of bloated household balance sheets has not even begun.

So do Japanese firms, many of which have large financial surpluses after a long period of post-bubble deleveraging.

It is doing so in order to sustain the domestic economy through deleveraging.

That is because, in today's deleveraging environment, banks are reluctant to lend and borrowers don't have a big appetite for credit.

In other words, instead of deleveraging, the banks have just shifted a chunk of their risk to the central bank.

after a crisis, countries historically saw their economies contract in the first year or two of deleveraging

Hedge funds and deleveraging: Waiting to turn trash into treasure

Indeed, fear of bank deleveraging is one factor driving record levels of bond issuance;

Deleveraging, a fate worse than debt