167:, like many previous financial crises, was blamed in part on excessive leverage. Consumers in the United States and many other developed countries had high levels of debt relative to their wages and the value of collateral assets. When home prices fell, and debt interest rates reset higher, and business laid off employees, borrowers could no longer afford debt payments, and lenders could not recover their principal by selling collateral. Financial institutions were highly levered.
230:
more than offset the additional risk from leverage. Or if an investor uses a fraction of his or her portfolio to margin stock index futures (high risk) and puts the rest in a low-risk money-market fund, he or she might have the same volatility and expected return as an investor in an unlevered low-risk equity-index fund. Or if both long and short positions are held by a pairs-trading stock strategy the matching and off-setting economic leverage may lower overall risk levels.
134:
certain kind of asset (from the left hand side of the balance sheet). A capital requirement is a fraction of assets (from the left hand side of the balance sheet) that must be held as a certain kind of liability or equity (from the right hand side of the balance sheet). Before the 1980s, regulators typically imposed judgmental capital requirements, a bank was supposed to be "adequately capitalized," but these were not objective rules.
1799:
1789:
753:
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to rapid ruin, for even if the underlying asset value decline is mild or temporary the debt-financing may be only short-term, and thus due for immediate repayment. The risk can be mitigated by negotiating the terms of leverage, by maintaining unused capacity for additional borrowing, and by leveraging only liquid assets which may rapidly be converted to cash.
654:
643:
154:
led to calls to reimpose leverage limits, by which most people meant accounting leverage limits, if they understood the distinction at all. However, in view of the problems with Basel I, it seems likely that some hybrid of accounting and notional leverage will be used, and the leverage limits will be
225:
This may happen exactly at a time when there is little market liquidity, i.e. a paucity of buyers, and sales by others are depressing prices. It means that as market price falls, leverage goes up in relation to the revised equity value, multiplying losses as prices continue to go down. This can lead
145:
While Basel I is generally credited with improving bank risk management it suffered from two main defects. It did not require capital for all off-balance sheet risks (there was a clumsy provisions for derivatives, but not for certain other off-balance sheet exposures) and it encouraged banks to pick
90:
owners of businesses leverage their investment by having the business borrow a portion of its needed financing. The more it borrows, the less equity it needs, so any profits or losses are shared among a smaller base and are proportionately larger as a result. Businesses leverage their operations by
133:
is a fraction of assets that is required to be funded in the form of equity or equity-like securities. Although these two are often confused, they are in fact opposite. A reserve requirement is a fraction of certain liabilities (from the right hand side of the balance sheet) that must be held as a
229:
There is an implicit assumption in that account, however, which is that the underlying leveraged asset is the same as the unleveraged one. If a company borrows money to modernize, add to its product line or expand internationally, the extra trading profit from the additional diversification might
221:
Risk may depend on the volatility in value of collateral assets. Brokers may demand additional funds when the value of securities held declines. Banks may decline to renew mortgages when the value of real estate declines below the debt's principal. Even if cash flows and profits are sufficient to
149:
Work on Basel II began in the early 1990s and it was implemented in stages beginning in 2005. Basel II attempted to limit economic leverage rather than accounting leverage. It required advanced banks to estimate the risk of their positions and allocate capital accordingly. While this is much more
191:
and conduits, plus various lending commitments, contractual payments and contingent obligations. On the other hand, almost half of Lehman's balance sheet consisted of closely offsetting positions and very-low-risk assets, such as regulatory deposits. The company emphasized "net leverage", which
233:
So while adding leverage to a given asset always adds risk, it is not the case that a levered company or investment is always riskier than an unlevered one. In fact, many highly levered hedge funds have less return volatility than unlevered bond funds, and normally heavily indebted low-risk
378:, so it is ignored for accounting leverage. Accounting leverage is therefore 1 to 1. The notional amount of the swap does count for notional leverage, so notional leverage is 2 to 1. The swap removes most of the economic risk of the treasury bond, so economic leverage is near zero.
141:
standard. Basel I categorized assets into five risk buckets, and mandated minimum capital requirements for each. This limits accounting leverage. If a bank is required to hold 8% capital against an asset, that is the same as an accounting leverage limit of 1/.08 or 12.5 to 1.
547:
748:{\displaystyle {\begin{aligned}{\text{Operating leverage}}&={\frac {{\text{Revenue}}-{\text{Variable Cost}}}{{\text{Revenue}}-{\text{Variable Cost}}-{\text{Fixed Cost}}}}={\frac {{\text{Revenue}}-{\text{Variable Cost}}}{\text{Operating Income}}}\end{aligned}}}
477:
555:
794:
57:
in physics, which amplifies a small input force into a greater output force, because successful leverage amplifies the smaller amounts of money needed for borrowing into large amounts of profit. However, the technique also involves the high
806:
There are several variants of each of these definitions, and the financial statements are usually adjusted before the values are computed. Moreover, there are industry-specific conventions that differ somewhat from the treatment above.
74:
Leveraging enables gains to be multiplied. On the other hand, losses are also multiplied, and there is a risk that leveraging will result in a loss if financing costs exceed the income from the asset, or the value of the asset falls.
62:
of not being able to pay back a large loan. Normally, a lender will set a limit on how much risk it is prepared to take and will set a limit on how much leverage it will permit, and would require the acquired asset to be provided as
146:
the riskiest assets in each bucket (for example, the capital requirement was the same for all corporate loans, whether to solid companies or ones near bankruptcy, and the requirement for government loans was zero).
324:
1116:
Huffman, Stephen P., "The Impact of
Degrees of Operating and Financial Leverage on the Systematic Risk of Common Stock: Another Look," Quarterly Journal of Business & Economics (Winter 1989), pp. 83–100.
1125:
Dugan, Michael T., Donald
Minyard, and Keith A. Shriver, "A Re-examination of the Operating Leverage-Financial Leverage Tradeoff," Quarterly Review of Economics & Finance (Fall 1994), pp. 327–334.
485:
799:
For outsiders, it is hard to calculate operating leverage as fixed and variable costs are usually not disclosed. In an attempt to estimate operating leverage, one can use the percentage change in
1134:
Darrat, Ali F.d and Tarun K. Mukherjee, "Inter-Industry
Differences and the Impact of Operating and Financial Leverages on Equity Risk," Review of Financial Economics (Spring 1995), pp. 141–155.
659:
210:
While leverage magnifies profits when the returns from the asset more than offset the costs of borrowing, leverage may also magnify losses. A corporation that borrows too much money might face
171:, for example, in its last annual financial statements, showed accounting leverage of 31.4 times ($ 691 billion in assets divided by $ 22 billion in stockholders' equity). Bankruptcy examiner
187:
transactions. At the end of 2007, Lehman had $ 738 billion of notional derivatives in addition to the assets above, plus significant off-balance sheet exposures to special purpose entities,
1203:
389:
940:
Saita, Francesco, Value at Risk and Bank
Capital Management: Risk Adjusted Performances, Capital Management and Capital Allocation Decision Making, Academic Press (February 3, 2007)
638:{\displaystyle {\text{Degree of Combined Leverage}}={\text{DOL}}\times {\text{DFL}}={\frac {\mathrm {EBIT} +{\text{Fixed Costs}}}{\mathrm {EBIT} -{\text{Total Interest Expense}}}}}
803:
for a one-percent change in revenue. The product of the two is called total leverage, and estimates the percentage change in net income for a one-percent change in revenue.
764:
129:, a fraction of deposits that was required to be held in liquid form, generally precious metals or government notes or deposits. This does not limit leverage. A
1196:
967:
1189:
1107:
Li, Rong-Jen and Glenn V. Henderson, Jr., "Combined
Leverage and Stock Risk," Quarterly Journal of Business & Finance (Winter 1991), pp. 18–39.
86:
are effectively leveraged bets between parties where the principal is implicitly borrowed and lent at interest rates of very short treasury bills.
218:
will lose 40% if the stock declines 20%.; also in this case the involved subject might be unable to refund the incurred significant total loss.
978:
Report of Anton R. Valukas, Examiner, to the United States
Bankruptcy Court, Southern District of New York, Chapter 11 Case No. 08-13555 (JMP).
950:
366:
of equity divided by volatility of an unlevered investment in the same assets. For example, assume a party buys $ 100 of a 10-year fixed-rate
175:
determined that the true accounting leverage was higher: it had been understated due to dubious accounting treatments including the so-called
298:
150:
rational in theory, it is more subject to estimation error, both honest and opportunitistic. The poor performance of many banks during the
896:
137:
National regulators began imposing formal capital requirements in the 1980s, and by 1988 most large multinational banks were held to the
542:{\displaystyle {\text{Degree of Financial Leverage}}={\frac {\mathrm {EBIT} }{\mathrm {EBIT} -{\text{Total Interest Expense}}}}}
214:
or default during a business downturn, while a less-leveraged corporation might survive. An investor who buys a stock on 50%
1828:
1039:
164:
17:
192:
excluded these assets. On that basis, Lehman held $ 373 billion of "net assets" and a "net leverage ratio" of 16.1.
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271:
472:{\displaystyle {\text{Degree of Operating Leverage}}={\frac {\mathrm {EBIT\;+\;Fixed\;Costs} }{\mathrm {EBIT} }}}
1583:
1729:
205:
188:
120:
1523:
1247:
354:
leverage is total notional amount of assets plus total notional amount of liabilities divided by equity.
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1603:
1774:
1759:
1749:
1588:
1403:
107:
may leverage their assets by financing a portion of their portfolios with the cash proceeds from the
1078:
928:
Ong, Michael K., The Basel
Handbook: A Guide for Financial Practitioners, Risk Books (December 2003)
789:{\displaystyle {\text{Financial leverage}}={\frac {\text{Total Debt}}{\text{Shareholders' Equity}}}}
201:
1792:
1769:
1707:
1533:
1458:
1418:
1398:
151:
1503:
1493:
1463:
1433:
1373:
875:
Mock, E. J., R. E. Schultz, R. G. Schultz, and D. H. Shuckett, Basic
Financial Management (1968).
125:
Before the 1980s, quantitative limits on bank leverage were rare. Banks in most countries had a
1744:
1645:
1508:
1346:
1316:
1174:
911:
Lang, Larry; Eli Ofek; Rene M. Stulz (January 1996). "Leverage, Investment, and Firm Growth".
1660:
894:
Ghosh, Dilip K.; Robert G. Sherman (June 1993). "Leverage, Resource
Allocation and Growth".
1682:
1677:
1181:
841:
363:
64:
8:
1632:
1028:
130:
126:
996:
Bodie, Zvi, Alex Kane and Alan J. Marcus, Investments, McGraw-Hill/Irwin (June 18, 2008)
949:
Tarullo, Daniel K., Banking on Basel: The Future of
International Financial Regulation,
1802:
1714:
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1216:
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are expected to maintain a leverage ratio in excess of 3%. The ratio is defined as
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100:
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168:
108:
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1165:
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1823:
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1321:
367:
1560:
1408:
1393:
1267:
968:
Lehman Brothers Holdings Inc Annual Report for year ended November 30, 2007
884:
Grunewald, Adolph E. and Erwin E. Nemmers, Basic Managerial Finance (1970).
155:
imposed in addition to, not instead of, Basel II economic leverage limits.
648:
There are several ways to define operating leverage, the most common. is:
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1326:
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47:
1147:
Bartram, Söhnke M.; Brown, Gregory W.; Waller, William (August 2015).
319:{\displaystyle {\frac {\mbox{Tier 1 Capital}}{\mbox{Total exposure}}}}
1498:
1361:
1098:
Damodaran (2011), Applied Corporate Finance, 3rd ed., pp. 132–133>
283:
1548:
1443:
1428:
176:
1378:
1059:
Weston, J. Fred and Eugene F. Brigham, Managerial Finance (1969).
138:
96:
95:
inputs when revenues are expected to be variable. An increase in
31:
910:
893:
183:). Banks' notional leverage was more than twice as high, due to
1068:
Brigham, Eugene F., Fundamentals of Financial Management (1995)
222:
maintain the ongoing borrowing costs, loans may be called-in.
78:
Leverage can arise in a number of situations. Securities like
1277:
267:
54:
1211:
374:
to convert the payments to floating rate. The derivative is
287:
68:
59:
43:
266:
Accounting leverage is total assets divided by the total
1013:
Managing Derivative Risks: The Use and Abuse of Leverage
238:
are usually less risky stocks than unlevered high-risk
309:
304:
767:
657:
558:
488:
392:
301:
27:
The use of borrowed funds in the purchase of an asset
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1002:
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934:
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858:
856:
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1027:
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471:
332:Here the exposure is defined broadly and includes
318:
1048:
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1815:
963:
961:
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919:
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1153:Journal of Financial and Quantitative Analysis
1019:
981:
951:Peterson Institute for International Economics
258:, and has multiple definitions in each field.
1197:
1010:
956:
370:and enters into a fixed-for-floating 10-year
340:is limited to the banks "core capital". See
897:Journal of Business Finance & Accounting
1798:
1788:
1204:
1190:
758:Financial leverage is usually defined as:
436:
420:
416:
1164:
1034:. Englewood Cliffs, N.J., Prentice-Hall.
1025:
250:The term leverage is used differently in
336:items and derivative "add-ons", whereas
206:Financial risk management § Banking
121:Financial risk management § Banking
14:
1816:
261:
1185:
864:Fundamentals of Financial Management
381:
357:
346:
202:Derivative (finance) § Leverage
99:will result in a larger increase in
53:Financial leverage is named after a
24:
1149:"How Important is Financial Risk?"
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1030:Financial Management and Policy
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342:Basel III § Leverage ratio
1584:Debtor-in-possession financing
943:
913:Journal of Financial Economics
904:
887:
878:
245:
189:structured investment vehicles
13:
1:
847:
165:financial crisis of 2007–2008
159:Financial crisis of 2007–2008
152:financial crisis of 2007–2009
1524:Staggered board of directors
491:Degree of Financial Leverage
395:Degree of Operating Leverage
7:
1641:Accretion/dilution analysis
1011:Chew, Lillian (July 1996).
810:
561:Degree of Combined Leverage
42:is any technique involving
10:
1845:
1604:Leveraged recapitalization
277:
199:
118:
114:
1829:Financial risk management
1783:
1775:Valuation using multiples
1760:Sum-of-the-parts analysis
1730:Modigliani–Miller theorem
1631:
1589:Dividend recapitalization
1569:
1417:
1404:Secondary market offering
1307:
1296:
1223:
1166:10.1017/S0022109015000216
111:sale of other positions.
1793:List of investment banks
1708:Free cash flow to equity
1534:Super-majority amendment
1459:Management due diligence
1399:Seasoned equity offering
1015:. John Wiley & Sons.
1504:Shareholder rights plan
1494:Post-merger integration
1464:Managerial entrenchment
1434:Contingent value rights
1374:Initial public offering
195:
1646:Adjusted present value
1509:Special-purpose entity
1347:Direct public offering
1317:At-the-market offering
790:
749:
639:
629:Total Interest Expense
543:
533:Total Interest Expense
473:
320:
1661:Conglomerate discount
791:
750:
640:
544:
474:
362:Economic leverage is
321:
200:Further information:
1683:Economic value added
1678:Discounted cash flow
1079:"Financial Leverage"
953:(September 30, 2008)
862:Brigham, Eugene F.,
842:Repurchase agreement
782:Shareholders' Equity
765:
655:
556:
486:
390:
299:
1268:Senior secured debt
900:. pp. 575–582.
262:Accounting leverage
131:capital requirement
127:reserve requirement
65:collateral security
1803:Outline of finance
1715:Market value added
1698:Financial modeling
1656:Business valuation
1579:Debt restructuring
1357:Follow-on offering
1342:Corporate spin-off
1300:(terms/conditions)
1217:investment banking
1026:Van Horne (1971).
837:Operating leverage
786:
770:Financial leverage
745:
743:
664:Operating leverage
635:
539:
469:
372:interest rate swap
316:
313:
308:
1811:
1810:
1735:Net present value
1720:Minority interest
1651:Associate company
1627:
1626:
1594:Financial sponsor
1514:Special situation
1484:Pre-emption right
1474:Minority discount
1384:Private placement
1283:Subordinated debt
1238:Exchangeable debt
1225:Capital structure
1213:Corporate finance
822:Homemade leverage
784:
783:
780:
771:
739:
738:
733:
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703:
695:
688:
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578:
570:
562:
537:
534:
492:
467:
396:
382:Corporate finance
376:off-balance sheet
358:Economic leverage
347:Notional leverage
334:off-balance sheet
314:
312:
307:
256:corporate finance
185:off-balance sheet
181:Ernst & Young
18:Equity multiplier
16:(Redirected from
1836:
1801:
1800:
1791:
1790:
1693:Fairness opinion
1688:Enterprise value
1671:Weighted average
1599:Leveraged buyout
1454:Drag-along right
1352:Equity carve-out
1309:Equity offerings
1305:
1304:
1301:
1273:Shareholder loan
1258:Second lien debt
1253:Preferred equity
1233:Convertible debt
1206:
1199:
1192:
1183:
1182:
1178:
1168:
1135:
1132:
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1123:
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1114:
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1008:
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979:
976:
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965:
954:
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941:
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929:
926:
917:
916:
915:. pp. 3–29.
908:
902:
901:
891:
885:
882:
876:
873:
867:
860:
832:Margin (finance)
827:Leveraged buyout
801:operating income
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792:
787:
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772:
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737:Operating Income
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236:public utilities
173:Anton R. Valukas
101:operating profit
21:
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1837:
1835:
1834:
1833:
1814:
1813:
1812:
1807:
1779:
1755:Stock valuation
1750:Residual income
1666:Cost of capital
1623:
1619:Project finance
1609:High-yield debt
1565:
1544:Tag-along right
1469:Mandatory offer
1439:Control premium
1420:
1413:
1389:Public offering
1337:Bought out deal
1299:
1298:
1292:
1219:
1210:
1143:
1141:Further reading
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854:
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817:Coupon leverage
813:
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169:Lehman Brothers
161:
123:
117:
44:borrowing funds
28:
23:
22:
15:
12:
11:
5:
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1770:Terminal value
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1703:Free cash flow
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1614:Private equity
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1359:
1354:
1349:
1344:
1339:
1334:
1329:
1324:
1319:
1313:
1311:
1302:
1294:
1293:
1291:
1290:
1285:
1280:
1275:
1270:
1265:
1260:
1255:
1250:
1245:
1243:Mezzanine debt
1240:
1235:
1229:
1227:
1221:
1220:
1209:
1208:
1201:
1194:
1186:
1180:
1179:
1159:(4): 801–824.
1142:
1139:
1137:
1136:
1127:
1118:
1109:
1100:
1091:
1070:
1061:
1047:
1040:
1018:
998:
980:
971:
955:
942:
930:
918:
903:
886:
877:
868:
851:
849:
846:
845:
844:
839:
834:
829:
824:
819:
812:
809:
797:
796:
775:
756:
755:
729:
718:
707:
699:
684:
673:
670:
668:
661:
660:
646:
645:
626:
622:
619:
616:
613:
602:
598:
595:
592:
589:
582:
574:
566:
550:
549:
530:
526:
523:
520:
517:
511:
508:
505:
502:
496:
480:
479:
465:
462:
459:
456:
451:
448:
445:
442:
439:
435:
432:
429:
426:
423:
419:
415:
412:
409:
406:
400:
383:
380:
359:
356:
348:
345:
338:Tier 1 capital
330:
329:
328:
327:
311:Total exposure
306:Tier 1 Capital
279:
276:
263:
260:
247:
244:
197:
194:
160:
157:
116:
113:
38:also known as
26:
9:
6:
4:
3:
2:
1841:
1830:
1827:
1825:
1822:
1821:
1819:
1804:
1796:
1794:
1786:
1785:
1782:
1776:
1773:
1771:
1768:
1766:
1763:
1761:
1758:
1756:
1753:
1751:
1748:
1746:
1743:
1741:
1738:
1736:
1733:
1731:
1728:
1726:
1723:
1721:
1718:
1716:
1713:
1709:
1706:
1705:
1704:
1701:
1699:
1696:
1694:
1691:
1689:
1686:
1684:
1681:
1679:
1676:
1672:
1669:
1668:
1667:
1664:
1662:
1659:
1657:
1654:
1652:
1649:
1647:
1644:
1642:
1639:
1638:
1636:
1634:
1630:
1620:
1617:
1615:
1612:
1610:
1607:
1605:
1602:
1600:
1597:
1595:
1592:
1590:
1587:
1585:
1582:
1580:
1577:
1576:
1574:
1572:
1568:
1562:
1559:
1555:
1552:
1551:
1550:
1547:
1545:
1542:
1540:
1537:
1535:
1532:
1530:
1527:
1525:
1522:
1520:
1517:
1515:
1512:
1510:
1507:
1505:
1502:
1500:
1497:
1495:
1492:
1490:
1487:
1485:
1482:
1480:
1477:
1475:
1472:
1470:
1467:
1465:
1462:
1460:
1457:
1455:
1452:
1450:
1447:
1445:
1442:
1440:
1437:
1435:
1432:
1430:
1427:
1426:
1424:
1422:
1416:
1410:
1407:
1405:
1402:
1400:
1397:
1395:
1392:
1390:
1387:
1385:
1382:
1380:
1377:
1375:
1372:
1368:
1365:
1364:
1363:
1360:
1358:
1355:
1353:
1350:
1348:
1345:
1343:
1340:
1338:
1335:
1333:
1330:
1328:
1325:
1323:
1322:Book building
1320:
1318:
1315:
1314:
1312:
1310:
1306:
1303:
1295:
1289:
1286:
1284:
1281:
1279:
1276:
1274:
1271:
1269:
1266:
1264:
1261:
1259:
1256:
1254:
1251:
1249:
1246:
1244:
1241:
1239:
1236:
1234:
1231:
1230:
1228:
1226:
1222:
1218:
1214:
1207:
1202:
1200:
1195:
1193:
1188:
1187:
1184:
1176:
1172:
1167:
1162:
1158:
1154:
1150:
1145:
1144:
1131:
1122:
1113:
1104:
1095:
1080:
1074:
1065:
1056:
1054:
1052:
1043:
1041:9780133153095
1037:
1032:
1031:
1022:
1014:
1007:
1005:
1003:
993:
991:
989:
987:
985:
975:
969:
964:
962:
960:
952:
946:
937:
935:
925:
923:
914:
907:
899:
898:
890:
881:
872:
865:
859:
857:
852:
843:
840:
838:
835:
833:
830:
828:
825:
823:
820:
818:
815:
814:
808:
804:
802:
773:
761:
760:
759:
732:Variable Cost
727:
716:
705:
702:Variable Cost
697:
687:Variable Cost
682:
671:
669:
651:
650:
649:
624:
600:
580:
572:
564:
552:
551:
528:
494:
482:
481:
417:
398:
386:
385:
379:
377:
373:
369:
368:treasury bond
365:
355:
353:
344:
343:
339:
335:
295:
294:
293:
292:
291:
289:
285:
275:
273:
269:
259:
257:
253:
243:
241:
237:
231:
227:
223:
219:
217:
213:
207:
203:
193:
190:
186:
182:
178:
174:
170:
166:
156:
153:
147:
143:
140:
135:
132:
128:
122:
112:
110:
106:
102:
98:
94:
89:
85:
81:
76:
72:
70:
66:
61:
56:
51:
49:
45:
41:
37:
33:
19:
1745:Real options
1570:
1561:Tender offer
1421:acquisitions
1409:Underwriting
1394:Rights issue
1297:Transactions
1156:
1152:
1130:
1121:
1112:
1103:
1094:
1082:. Retrieved
1073:
1064:
1029:
1021:
1012:
974:
945:
912:
906:
895:
889:
880:
871:
863:
805:
798:
757:
647:
361:
350:
331:
281:
270:minus total
265:
249:
232:
228:
224:
220:
209:
179:(allowed by
162:
148:
144:
136:
124:
77:
73:
52:
39:
35:
29:
1519:Squeeze-out
1489:Proxy fight
1419:Mergers and
1332:Bought deal
1263:Senior debt
1084:16 December
605:Fixed Costs
272:liabilities
252:investments
246:Definitions
242:companies.
105:Hedge funds
1818:Categories
1765:Tax shield
1725:Mismarking
1529:Stock swap
1479:Pitch book
1449:Divestment
1327:Bookrunner
1248:Pari passu
848:References
779:Total Debt
710:Fixed Cost
364:volatility
240:technology
212:bankruptcy
119:See also:
93:fixed cost
48:investment
46:to buy an
1740:Pure play
1633:Valuation
1499:Sell side
1362:Greenshoe
728:−
706:−
698:−
683:−
625:−
573:×
529:−
284:Basel III
36:leverage,
1571:Leverage
1549:Takeover
1444:Demerger
1429:Buy side
811:See also
352:Notional
177:repo 105
67:for the
40:gearing,
1554:Reverse
1539:Synergy
1379:Pre-IPO
1367:Reverse
1288:Warrant
1175:2307939
866:(1995).
724:Revenue
694:Revenue
679:Revenue
278:Banking
139:Basel I
115:History
97:revenue
84:futures
80:options
32:finance
1173:
1038:
282:Under
268:assets
216:margin
204:, and
91:using
88:Equity
1278:Stock
288:banks
109:short
55:lever
1824:Debt
1215:and
1171:SSRN
1086:2012
1036:ISBN
254:and
196:Risk
163:The
82:and
69:loan
60:risk
1161:doi
577:DFL
569:DOL
274:.
50:.
30:In
1820::
1169:.
1157:50
1155:.
1151:.
1050:^
1001:^
983:^
958:^
933:^
921:^
855:^
286:,
103:.
71:.
34:,
1205:e
1198:t
1191:v
1177:.
1163::
1088:.
1044:.
774:=
717:=
672:=
621:T
618:I
615:B
612:E
601:+
597:T
594:I
591:B
588:E
581:=
565:=
525:T
522:I
519:B
516:E
510:T
507:I
504:B
501:E
495:=
464:T
461:I
458:B
455:E
450:s
447:t
444:s
441:o
438:C
434:d
431:e
428:x
425:i
422:F
418:+
414:T
411:I
408:B
405:E
399:=
326:.
20:)
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