Deleveraging
Before the credit crunch, firms and households expanded through 'leverage' - borrowing to buy assets. 'Deleveraging' is this process in reverse.
Before the credit crunch, firms and households expanded through 'leverage'- borrowing to buy assets. It worked provided asset prices rose as lenders knew they could seize and sell them should a client fail to repay interest and/or capital. 'Deleveraging' is this process in reverse.
The trigger was the credit crunch, which spawned falling prices for everything from houses and stocks to commodities.
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See Tim Bennett's video tutorial: Three ways leverage can boost your returns.
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