Debt relief [linguistically unattractive] also deleveraging

Unless otherwise defined, this refers to the reduction or complete repayment of the proportion of borrowed capital in a company. The use of borrowed capital is basically only advantageous as long as the return generated by the company from the borrowed capital is higher than the cost of the borrowed capital, roughly: the interest and, in the case of money from another currency area, the hedging costs (financial leverage can be favorable, if a company can achieve significant growth through the amounts of debt. But if leverage does not achieve further growth, it may become too risky, the company has to delever by decreasing the amount of debt). – See bond ratio, deleveraging, earnings efficiency, profit taxation, leverage, hedge fund risks, highly leveraged institutions, leverage, perpetual motion machine, swap rate, interest burden ratio.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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