deleveraging

American  

[dee-lev-er-ij-ing, ‑lee-ver‑] / diˈlɛv ər ɪdʒ ɪŋ, ‑li vər‑ /

noun

1. the act or process of paying off or reducing debt; a decreasing of financial leverage.

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Etymology

Origin of deleveraging

First recorded in 1975–80; de- ( def. ) + leveraging ( def. )

Example Sentences

First, he pointed to deleveraging that often takes place in an asset in which investors have ample profits, irrespective of its fundamental drivers.

From MarketWatch • Mar. 27, 2026

Fitch expects to resolve the ratings watch once there is more clarity on final transaction terms, financing and post-close deleveraging priorities.

From The Wall Street Journal • Mar. 3, 2026

A spiral of illiquidity, forced selling, markdowns and deleveraging could emerge.

From MarketWatch • Feb. 26, 2026

The sell-off has been intensified by forced deleveraging, as investors who borrowed money to bet on bitcoin's rise are forced to sell when losses mount, pushing prices lower.

From Barron's • Feb. 6, 2026

“We are going through the greatest deleveraging in the history of financial services and it’s going to go on and on and on,” he said.

From "The Big Short" by Michael Lewis