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For instance, the Tax Free Puerto Rico Fund II has a leverage ratio of 53 percent, meaning for every dollar of customer assets it holds, it has roughly another dollar of assets bought with borrowed money.
That average masks wide variations, however: China Overseas Land & Investment (COLI), a state-run goliath, has a leverage ratio of only 36%, whereas Shimao, a smaller rival, has one of 77%.
Together, European metropolises represent a very substantial public procurement market of about €10bn per year and this has a leverage effect on the private sector that very often aligns its own requirements with the public sector.
Such an erosion can be devastating for any investment bank, especially one like Bear Stearns, which has a leverage ratio of over 30 to 1, meaning it borrows more than 30 times the value of its $11 billion equity base.
This building has a leverage effect on Asian economies.
It has a leverage ratio of around 30%.
Similar(49)
I have a leverage with the Legislature that other governors normally don't have".
At the time of its bankruptcy Lehman Brothers was said to have a leverage ratio of 44.
For instance, a bank with $3 in capital and $100 in assets would have a leverage ratio of 3 percent.
That was the first time that Enron had admitted it had a leverage problem, and it came only after the brutal reality had become apparent to many others.
The significance of high leverage was demonstrated by the demise of Lehman Brothers, which had a leverage ratio of 30 to 1.
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