Sentence examples for leveraged risk from inspiring English sources

Here we should remember that it was the use of offshore subsidiaries which allowed many financial institutions to crank up astronomic levels of leveraged risk, conveniently out of sight of the regulators.

As noted by Paul Craig Roberts, "the only major effect of closing out or netting all the swaps (mostly over-the-counter contracts between counter-parties) would be to take $230 trillion of leveraged risk out of the financial system".

But such leveraged risk-taking, now on a huge scale, adds to the volatility of all markets.

Mr. Gensler focused on capital and margin requirements, saying they would prevent derivatives users like the American International Group from amassing "large or highly leveraged risks outside the oversight of prudential safeguards of regulators".

The yield may be below hedge funds (which often contain leveraged risks) but  higher than most asset-backed securities — still very attractive for most investors, but it lowers the cost of funding for the platforms.

"The different stations produce contracts that create, disguise, assign or insure over-leveraged risk exposures," Kane said.

For example, a bailout is not about throwing water out of a ship but about putting money into something, while hedge funds have nothing to do at all with the original meaning – of hedging a bet – but rather they are a mechanism by which a lot of money is put together by investors which is then used to take highly-leveraged risks.

The firm also "pioneered the separation of alpha and beta" investments and developed a strategy called "alpha overlay" which involved a portfolio of "20 uncorrelated" investments, leveraged for risk or return and combined with cash or an investment market benchmark.

"If you have a more highly regulated financial industry, and less highly leveraged — taking less risk, using less borrowed money to take risk — you're unlikely to see the same big run-ups in profits that we've enjoyed in recent years," she says.

Private equity firms that are buying leveraged buyout loans risk repeating the mistakes of investors in subprime mortgages, British financier Guy Hands told Bloomberg News.

The firm's American parent opened a London office in 2006 on the basis that a financial system dominated by banks that were highly leveraged and mispricing risk was unlikely to end well.