deleverage

deleverage definition - business

deleverage

A reduction in the use of fixed-cost financing, generally in an effort to reduce risk. For example, a company repays debt with proceeds from the sale of a subsidiary. Compare leverage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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