Regulators overcome this problem by using the ratio of assets to capital on the bank's balance sheet, or its "leverage ratio." A higher leverage ratio meansthe bank has to use more capital to finance its assets, at least relative to its total amount of borrowed funds. What happens when a...
“Hedge fund leverage remained somewhat higher than its historical average in the first quarter of 2021, according to the most comprehensive available measures. On-balance-sheet leverage at hedge funds, based on confidential data collected by the Securities an...
aOne of the underlying features of the crisis was the build up of excessive on- and off-balance sheet leverage in the banking system. The build up of leverage also has been a feature of previous financial crises, for example leading up to September 1998. During the most severe part of the...
aThe balance sheet is now back to where it started before the price changes. Leverage is back[translate] arule the world 统治世界[translate] a你为你的妈妈做了什么呢 You have made any for yours mother[translate] aa light smoker 一个轻的吸烟者[translate] ...
A farming household’s decision to continue producing agricultural commodities within the United States is influenced by a multitude of factors. Thus, this study seeks to examine whether the outstanding student loan balance of any member within a farming household may explain why the total number of...
Ares Capital also uses less leverage than is allowed by regulators, earning the firm a BBB credit rating. These qualities have helped Ares Capital pay steady dividends since its founding in 2004, with the only blemish being a 17% dividend cut in 2009 when management opted to strengthen the b...
Passage 3From the bank’s point of view, leverage ratios vary from conservative (highest calculated leverage) to liberal (lowest calculated leverage) The most conservative leverage rations show the most debt and least net worth, Therefore, the total liabilities/tangible net worth ratio will produce...
The aggregate demand channel for unemployment predicts that employment losses in the non-tradable sector are higher in high leverage U.S. counties that were most severely impacted by the balance sheet shock, while losses in the tradable sector are distributed uniformly across all counties. We find...
The aggregate demand channel for unemployment predicts that employment losses in the non-tradable sector are higher in high leverage U.S. counties that were most severely impacted by the balance sheet shock, while losses in the tradable sector are distributed uniformly across all counties. We find...
Investment-grade (BBB/Baa or higher) credit spreads could widen from current levels as the economy weakens. Corporate balance sheets are currently in decent shape and can likely withstand some bumps in the road before they become overly stressed. Aggregate leverage in the credit...