156:, 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.
219:
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.
123:
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.
1788:
1778:
742:
215:
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.
643:
632:
143:
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
214:
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
134:
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
79:
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
122:
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
218:
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
210:
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
138:
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
180:
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
222:
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
367:, 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.
130:
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.
536:
737:{\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}}}
466:
544:
783:
46:
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
795:
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.
63:
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.
51:
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
135:
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).
313:
1105:
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.
1114:
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.
474:
788:
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
1123:
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.
648:
199:
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
160:, 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
176:
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,
1192:
378:
929:
Saita, Francesco, Value at Risk and Bank
Capital Management: Risk Adjusted Performances, Capital Management and Capital Allocation Decision Making, Academic Press (February 3, 2007)
627:{\displaystyle {\text{Degree of Combined Leverage}}={\text{DOL}}\times {\text{DFL}}={\frac {\mathrm {EBIT} +{\text{Fixed Costs}}}{\mathrm {EBIT} -{\text{Total Interest Expense}}}}}
792:
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.
753:
118:, 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
1185:
956:
1178:
1096:
Li, Rong-Jen and Glenn V. Henderson, Jr., "Combined
Leverage and Stock Risk," Quarterly Journal of Business & Finance (Winter 1991), pp. 18–39.
75:
are effectively leveraged bets between parties where the principal is implicitly borrowed and lent at interest rates of very short treasury bills.
207:
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.
967:
Report of Anton R. Valukas, Examiner, to the United States
Bankruptcy Court, Southern District of New York, Chapter 11 Case No. 08-13555 (JMP).
939:
355:
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
164:
determined that the true accounting leverage was higher: it had been understated due to dubious accounting treatments including the so-called
287:
139:
rational in theory, it is more subject to estimation error, both honest and opportunitistic. The poor performance of many banks during the
885:
126:
National regulators began imposing formal capital requirements in the 1980s, and by 1988 most large multinational banks were held to the
531:{\displaystyle {\text{Degree of Financial Leverage}}={\frac {\mathrm {EBIT} }{\mathrm {EBIT} -{\text{Total Interest Expense}}}}}
203:
or default during a business downturn, while a less-leveraged corporation might survive. An investor who buys a stock on 50%
1817:
1028:
153:
181:
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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260:
461:{\displaystyle {\text{Degree of Operating Leverage}}={\frac {\mathrm {EBIT\;+\;Fixed\;Costs} }{\mathrm {EBIT} }}}
1572:
1718:
194:
177:
109:
1512:
1236:
343:
leverage is total notional amount of assets plus total notional amount of liabilities divided by equity.
1629:
1592:
1763:
1748:
1738:
1577:
1392:
96:
may leverage their assets by financing a portion of their portfolios with the cash proceeds from the
1067:
917:
Ong, Michael K., The Basel
Handbook: A Guide for Financial Practitioners, Risk Books (December 2003)
778:{\displaystyle {\text{Financial leverage}}={\frac {\text{Total Debt}}{\text{Shareholders' Equity}}}}
190:
1781:
1758:
1696:
1522:
1447:
1407:
1387:
140:
1492:
1482:
1452:
1422:
1362:
864:
Mock, E. J., R. E. Schultz, R. G. Schultz, and D. H. Shuckett, Basic
Financial Management (1968).
114:
Before the 1980s, quantitative limits on bank leverage were rare. Banks in most countries had a
1733:
1634:
1497:
1335:
1305:
1163:
900:
Lang, Larry; Eli Ofek; Rene M. Stulz (January 1996). "Leverage, Investment, and Firm Growth".
1649:
883:
Ghosh, Dilip K.; Robert G. Sherman (June 1993). "Leverage, Resource
Allocation and Growth".
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1666:
1170:
830:
352:
53:
8:
1621:
1017:
119:
115:
985:
Bodie, Zvi, Alex Kane and Alan J. Marcus, Investments, McGraw-Hill/Irwin (June 18, 2008)
938:
Tarullo, Daniel K., Banking on Basel: The Future of
International Financial Regulation,
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1703:
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are expected to maintain a leverage ratio in excess of 3%. The ratio is defined as
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68:
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340:
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224:
1154:
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1812:
1806:
1310:
356:
1549:
1397:
1382:
1256:
957:
Lehman Brothers Holdings Inc Annual Report for year ended November 30, 2007
873:
Grunewald, Adolph E. and Erwin E. Nemmers, Basic Managerial Finance (1970).
144:
imposed in addition to, not instead of, Basel II economic leverage limits.
637:
There are several ways to define operating leverage, the most common. is:
1507:
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1320:
1251:
1753:
1713:
1517:
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1437:
1315:
240:
228:
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93:
81:
36:
1136:
Bartram, Söhnke M.; Brown, Gregory W.; Waller, William (August 2015).
308:{\displaystyle {\frac {\mbox{Tier 1 Capital}}{\mbox{Total exposure}}}}
1487:
1350:
1087:
Damodaran (2011), Applied Corporate Finance, 3rd ed., pp. 132–133>
272:
1537:
1432:
1417:
165:
1367:
1048:
Weston, J. Fred and Eugene F. Brigham, Managerial Finance (1969).
127:
85:
84:
inputs when revenues are expected to be variable. An increase in
20:
899:
882:
172:). Banks' notional leverage was more than twice as high, due to
1057:
Brigham, Eugene F., Fundamentals of Financial Management (1995)
211:
maintain the ongoing borrowing costs, loans may be called-in.
67:
Leverage can arise in a number of situations. Securities like
1266:
256:
43:
1200:
363:
to convert the payments to floating rate. The derivative is
276:
57:
48:
32:
255:
Accounting leverage is total assets divided by the total
1002:
Managing Derivative Risks: The Use and Abuse of Leverage
227:
are usually less risky stocks than unlevered high-risk
298:
293:
756:
646:
547:
477:
381:
290:
16:
The use of borrowed funds in the purchase of an asset
1044:
1042:
1040:
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993:
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923:
913:
911:
847:
845:
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1016:
777:
736:
626:
530:
460:
321:Here the exposure is defined broadly and includes
307:
1037:
988:
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979:
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1804:
952:
950:
948:
920:
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842:
147:
1142:Journal of Financial and Quantitative Analysis
1008:
970:
940:Peterson Institute for International Economics
247:, and has multiple definitions in each field.
1186:
999:
945:
359:and enters into a fixed-for-floating 10-year
329:is limited to the banks "core capital". See
886:Journal of Business Finance & Accounting
1787:
1777:
1193:
1179:
747:Financial leverage is usually defined as:
425:
409:
405:
1153:
1023:. Englewood Cliffs, N.J., Prentice-Hall.
1014:
239:The term leverage is used differently in
325:items and derivative "add-ons", whereas
195:Financial risk management § Banking
110:Financial risk management § Banking
1805:
250:
1174:
853:Fundamentals of Financial Management
370:
346:
335:
191:Derivative (finance) § Leverage
88:will result in a larger increase in
42:Financial leverage is named after a
13:
1138:"How Important is Financial Risk?"
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1019:Financial Management and Policy
961:
331:Basel III § Leverage ratio
1573:Debtor-in-possession financing
932:
902:Journal of Financial Economics
893:
876:
867:
234:
178:structured investment vehicles
1:
836:
154:financial crisis of 2007–2008
148:Financial crisis of 2007–2008
141:financial crisis of 2007–2009
1513:Staggered board of directors
480:Degree of Financial Leverage
384:Degree of Operating Leverage
7:
1630:Accretion/dilution analysis
1000:Chew, Lillian (July 1996).
799:
550:Degree of Combined Leverage
31:is any technique involving
10:
1834:
1593:Leveraged recapitalization
266:
188:
107:
103:
1818:Financial risk management
1772:
1764:Valuation using multiples
1749:Sum-of-the-parts analysis
1719:Modigliani–Miller theorem
1620:
1578:Dividend recapitalization
1558:
1406:
1393:Secondary market offering
1296:
1285:
1212:
1155:10.1017/S0022109015000216
100:sale of other positions.
1782:List of investment banks
1697:Free cash flow to equity
1523:Super-majority amendment
1448:Management due diligence
1388:Seasoned equity offering
1004:. John Wiley & Sons.
1493:Shareholder rights plan
1483:Post-merger integration
1453:Managerial entrenchment
1423:Contingent value rights
1363:Initial public offering
184:
1635:Adjusted present value
1498:Special-purpose entity
1336:Direct public offering
1306:At-the-market offering
779:
738:
628:
618:Total Interest Expense
532:
522:Total Interest Expense
462:
309:
1650:Conglomerate discount
780:
739:
629:
533:
463:
351:Economic leverage is
310:
189:Further information:
1672:Economic value added
1667:Discounted cash flow
1068:"Financial Leverage"
942:(September 30, 2008)
851:Brigham, Eugene F.,
831:Repurchase agreement
771:Shareholders' Equity
754:
644:
545:
475:
379:
288:
1257:Senior secured debt
889:. pp. 575–582.
251:Accounting leverage
120:capital requirement
116:reserve requirement
54:collateral security
1792:Outline of finance
1704:Market value added
1687:Financial modeling
1645:Business valuation
1568:Debt restructuring
1346:Follow-on offering
1331:Corporate spin-off
1289:(terms/conditions)
1206:investment banking
1015:Van Horne (1971).
826:Operating leverage
775:
759:Financial leverage
734:
732:
653:Operating leverage
624:
528:
458:
361:interest rate swap
305:
302:
297:
1800:
1799:
1724:Net present value
1709:Minority interest
1640:Associate company
1616:
1615:
1583:Financial sponsor
1503:Special situation
1473:Pre-emption right
1463:Minority discount
1373:Private placement
1272:Subordinated debt
1227:Exchangeable debt
1214:Capital structure
1202:Corporate finance
811:Homemade leverage
773:
772:
769:
760:
728:
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714:
703:
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684:
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669:
654:
622:
619:
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567:
559:
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526:
523:
481:
456:
385:
371:Corporate finance
365:off-balance sheet
347:Economic leverage
336:Notional leverage
323:off-balance sheet
303:
301:
296:
245:corporate finance
174:off-balance sheet
170:Ernst & Young
1825:
1790:
1789:
1780:
1779:
1682:Fairness opinion
1677:Enterprise value
1660:Weighted average
1588:Leveraged buyout
1443:Drag-along right
1341:Equity carve-out
1298:Equity offerings
1294:
1293:
1290:
1262:Shareholder loan
1247:Second lien debt
1242:Preferred equity
1222:Convertible debt
1195:
1188:
1181:
1172:
1171:
1167:
1157:
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1115:
1112:
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1103:
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1079:
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1005:
997:
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983:
968:
965:
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954:
943:
936:
930:
927:
918:
915:
906:
905:
904:. pp. 3–29.
897:
891:
890:
880:
874:
871:
865:
862:
856:
849:
821:Margin (finance)
816:Leveraged buyout
790:operating income
784:
782:
781:
776:
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770:
767:
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758:
743:
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726:Operating Income
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225:public utilities
162:Anton R. Valukas
90:operating profit
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1826:
1824:
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1822:
1803:
1802:
1801:
1796:
1768:
1744:Stock valuation
1739:Residual income
1655:Cost of capital
1612:
1608:Project finance
1598:High-yield debt
1554:
1533:Tag-along right
1458:Mandatory offer
1428:Control premium
1409:
1402:
1378:Public offering
1326:Bought out deal
1288:
1287:
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1208:
1199:
1132:
1130:Further reading
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806:Coupon leverage
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158:Lehman Brothers
150:
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33:borrowing funds
17:
12:
11:
5:
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1759:Terminal value
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1692:Free cash flow
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1603:Private equity
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1300:
1291:
1283:
1282:
1280:
1279:
1274:
1269:
1264:
1259:
1254:
1249:
1244:
1239:
1234:
1232:Mezzanine debt
1229:
1224:
1218:
1216:
1210:
1209:
1198:
1197:
1190:
1183:
1175:
1169:
1168:
1148:(4): 801–824.
1131:
1128:
1126:
1125:
1116:
1107:
1098:
1089:
1080:
1059:
1050:
1036:
1029:
1007:
987:
969:
960:
944:
931:
919:
907:
892:
875:
866:
857:
840:
838:
835:
834:
833:
828:
823:
818:
813:
808:
801:
798:
786:
785:
764:
745:
744:
718:
707:
696:
688:
673:
662:
659:
657:
650:
649:
635:
634:
615:
611:
608:
605:
602:
591:
587:
584:
581:
578:
571:
563:
555:
539:
538:
519:
515:
512:
509:
506:
500:
497:
494:
491:
485:
469:
468:
454:
451:
448:
445:
440:
437:
434:
431:
428:
424:
421:
418:
415:
412:
408:
404:
401:
398:
395:
389:
372:
369:
348:
345:
337:
334:
327:Tier 1 capital
319:
318:
317:
316:
300:Total exposure
295:Tier 1 Capital
268:
265:
252:
249:
236:
233:
186:
183:
149:
146:
105:
102:
27:also known as
15:
9:
6:
4:
3:
2:
1830:
1819:
1816:
1814:
1811:
1810:
1808:
1793:
1785:
1783:
1775:
1774:
1771:
1765:
1762:
1760:
1757:
1755:
1752:
1750:
1747:
1745:
1742:
1740:
1737:
1735:
1732:
1730:
1727:
1725:
1722:
1720:
1717:
1715:
1712:
1710:
1707:
1705:
1702:
1698:
1695:
1694:
1693:
1690:
1688:
1685:
1683:
1680:
1678:
1675:
1673:
1670:
1668:
1665:
1661:
1658:
1657:
1656:
1653:
1651:
1648:
1646:
1643:
1641:
1638:
1636:
1633:
1631:
1628:
1627:
1625:
1623:
1619:
1609:
1606:
1604:
1601:
1599:
1596:
1594:
1591:
1589:
1586:
1584:
1581:
1579:
1576:
1574:
1571:
1569:
1566:
1565:
1563:
1561:
1557:
1551:
1548:
1544:
1541:
1540:
1539:
1536:
1534:
1531:
1529:
1526:
1524:
1521:
1519:
1516:
1514:
1511:
1509:
1506:
1504:
1501:
1499:
1496:
1494:
1491:
1489:
1486:
1484:
1481:
1479:
1476:
1474:
1471:
1469:
1466:
1464:
1461:
1459:
1456:
1454:
1451:
1449:
1446:
1444:
1441:
1439:
1436:
1434:
1431:
1429:
1426:
1424:
1421:
1419:
1416:
1415:
1413:
1411:
1405:
1399:
1396:
1394:
1391:
1389:
1386:
1384:
1381:
1379:
1376:
1374:
1371:
1369:
1366:
1364:
1361:
1357:
1354:
1353:
1352:
1349:
1347:
1344:
1342:
1339:
1337:
1334:
1332:
1329:
1327:
1324:
1322:
1319:
1317:
1314:
1312:
1311:Book building
1309:
1307:
1304:
1303:
1301:
1299:
1295:
1292:
1284:
1278:
1275:
1273:
1270:
1268:
1265:
1263:
1260:
1258:
1255:
1253:
1250:
1248:
1245:
1243:
1240:
1238:
1235:
1233:
1230:
1228:
1225:
1223:
1220:
1219:
1217:
1215:
1211:
1207:
1203:
1196:
1191:
1189:
1184:
1182:
1177:
1176:
1173:
1165:
1161:
1156:
1151:
1147:
1143:
1139:
1134:
1133:
1120:
1111:
1102:
1093:
1084:
1069:
1063:
1054:
1045:
1043:
1041:
1032:
1030:9780133153095
1026:
1021:
1020:
1011:
1003:
996:
994:
992:
982:
980:
978:
976:
974:
964:
958:
953:
951:
949:
941:
935:
926:
924:
914:
912:
903:
896:
888:
887:
879:
870:
861:
854:
848:
846:
841:
832:
829:
827:
824:
822:
819:
817:
814:
812:
809:
807:
804:
803:
797:
793:
791:
762:
750:
749:
748:
721:Variable Cost
716:
705:
694:
691:Variable Cost
686:
676:Variable Cost
671:
660:
658:
640:
639:
638:
613:
589:
569:
561:
553:
541:
540:
517:
483:
471:
470:
406:
387:
375:
374:
368:
366:
362:
358:
357:treasury bond
354:
344:
342:
333:
332:
328:
324:
284:
283:
282:
281:
280:
278:
274:
264:
262:
258:
248:
246:
242:
232:
230:
226:
220:
216:
212:
208:
206:
202:
196:
192:
182:
179:
175:
171:
167:
163:
159:
155:
145:
142:
136:
132:
129:
124:
121:
117:
111:
101:
99:
95:
91:
87:
83:
78:
74:
70:
65:
61:
59:
55:
50:
45:
40:
38:
34:
30:
26:
22:
1734:Real options
1559:
1550:Tender offer
1410:acquisitions
1398:Underwriting
1383:Rights issue
1286:Transactions
1145:
1141:
1119:
1110:
1101:
1092:
1083:
1071:. Retrieved
1062:
1053:
1018:
1010:
1001:
963:
934:
901:
895:
884:
878:
869:
860:
852:
794:
787:
746:
636:
350:
339:
320:
270:
259:minus total
254:
238:
221:
217:
213:
209:
198:
168:(allowed by
151:
137:
133:
125:
113:
66:
62:
41:
28:
24:
18:
1508:Squeeze-out
1478:Proxy fight
1408:Mergers and
1321:Bought deal
1252:Senior debt
1073:16 December
594:Fixed Costs
261:liabilities
241:investments
235:Definitions
231:companies.
94:Hedge funds
1807:Categories
1754:Tax shield
1714:Mismarking
1518:Stock swap
1468:Pitch book
1438:Divestment
1316:Bookrunner
1237:Pari passu
837:References
768:Total Debt
699:Fixed Cost
353:volatility
229:technology
201:bankruptcy
108:See also:
82:fixed cost
37:investment
35:to buy an
1729:Pure play
1622:Valuation
1488:Sell side
1351:Greenshoe
717:−
695:−
687:−
672:−
614:−
562:×
518:−
273:Basel III
25:leverage,
1560:Leverage
1538:Takeover
1433:Demerger
1418:Buy side
800:See also
341:Notional
166:repo 105
56:for the
29:gearing,
1543:Reverse
1528:Synergy
1368:Pre-IPO
1356:Reverse
1277:Warrant
1164:2307939
855:(1995).
713:Revenue
683:Revenue
668:Revenue
267:Banking
128:Basel I
104:History
86:revenue
73:futures
69:options
21:finance
1162:
1027:
271:Under
257:assets
205:margin
193:, and
80:using
77:Equity
1267:Stock
277:banks
98:short
44:lever
1813:Debt
1204:and
1160:SSRN
1075:2012
1025:ISBN
243:and
185:Risk
152:The
71:and
58:loan
49:risk
1150:doi
566:DFL
558:DOL
263:.
39:.
19:In
1809::
1158:.
1146:50
1144:.
1140:.
1039:^
990:^
972:^
947:^
922:^
910:^
844:^
275:,
92:.
60:.
23:,
1194:e
1187:t
1180:v
1166:.
1152::
1077:.
1033:.
763:=
706:=
661:=
610:T
607:I
604:B
601:E
590:+
586:T
583:I
580:B
577:E
570:=
554:=
514:T
511:I
508:B
505:E
499:T
496:I
493:B
490:E
484:=
453:T
450:I
447:B
444:E
439:s
436:t
433:s
430:o
427:C
423:d
420:e
417:x
414:i
411:F
407:+
403:T
400:I
397:B
394:E
388:=
315:.
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