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Keyword: Leverage


Leveraging and Deleveraging (5/13/2010)

The leverage cycle could amplify business cycles apart from routine monetary policies via interest rates.

Keywords: ABS, asset-backed securities, CDO, collateralized debt obligation, deleverage, equity, interest rates, Leverage, leverage cycle, margin call, positive feedback

Too Big to Fail (6/18/2010)

Some financial institutions could commit moral hazard by leveraging their implicit high credit ratings and tax-payer guarantees to load up on high-risk debts and obligations.

Keywords: AIG, bailouts, bankruptcy, Citibank, credit default swaps, credit ratings, Fannie Mae, FDIC, Freddie Mac, JP Morgan Chase, leverage, Moral hazard, securitized debt, subprime mortgage, too big to fail