"corporate leverage" is a correct and usable term in written English.
It is used to describe the use of a company's resources (often monetary) to increase potential gain. For example, "The company used corporate leverage to increase its profits by investing in new markets."
A group of shareholders who, because of their personal leverage, seek to invest in corporations that maintain a compatible degree of corporate leverage.
Even so, the sharp tick-up in corporate leverage ought to sound a warning to investors.
Against corporate leverage, by changing the tax bias that now favors debt finance.
This time European corporate leverage has risen but spreads have fallen.
"Corporate leverage has declined only about 3percentt since new management took over," he said.
Corporate leverage, measured as debt to book equity, was stable or falling in most countries before the crisis.
Nonetheless, even if a major financial danger does not seem to be lurking around a dark corner, given current levels of leverage and expected moves by US monetary policymakers, as well as commodity price softness, the region should not count on some sort of corporate leverage-based way out of its currently subpar economic prospects.
Emerging market economies face challenges to greater stability as bond markets indicate heightened sensitivity to monetary easing from external investors flooding into domestic markets, rendering exposure to potential capital flights brought on by heavy corporate leveraging in expansionary credit environments.
There is also abundant anecdotal evidence of corporate-leverage ratios ticking up.The implicit bet that investors and policymakers are making is that whatever costs come from an eventual increase in interest rates, they will be more than offset by the positive effects of an economy rejuvenated in part by cheap credit.
In a typical leveraged buy‐out, the buyers create a new corporate entity, leverage their own money with perhaps three times as much in borrowed funds, and purchase all the assets - the entire business - of an ongoing company for cash.
But as economist Donald Luskin has written, small changes in GDP cause big swings in corporate operating leverage and thus in stock market values, investor animal spirits and consumer sentiment.
