deleverage

American  

[dee-lev-er-ij, ‑-lee-ver‑] / diˈlɛv ər ɪdʒ, ‑ˈli vər‑ /

verb (used without object)

deleveraged, deleveraging

1. to decrease financial leverage by paying off debt.

   Their balance sheet significantly improved after they deleveraged.

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verb (used with object)

deleveraged, deleveraging

1. to reduce the debt of.

   He drastically deleveraged the company to make it profitable.

noun

1. an instance of this.

   The economic crisis has forced a deleverage.

deleverage British  

/ diːˈlɛvərɪdʒ, -vrɪdʒ /

verb

1. finance (of an organization) to reduce the ratio of debt capital to equity capital

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Etymology

Origin of deleverage

First recorded in 1980–85; de- ( def. ) + leverage ( def. )

Example Sentences

The funds that adjust for volatility, meanwhile, will likely continue to deleverage but “with small impact,” they said.

From MarketWatch • Mar. 27, 2026

Paramount will have a lot of debt following the deal—nearly $80 billion—and it plans to deleverage rapidly, a goal that has its Wall Street skeptics.

From Barron's • Mar. 13, 2026

“FAT Brands plans to use the filings to deleverage the balance sheet, maximize value for its stakeholders, and support continued growth of its brands,” the statement showed.

From The Wall Street Journal • Jan. 27, 2026

As I have said repeatedly for months, the problem is that financial institutions are having to deleverage.

From Forbes • Oct. 6, 2014

The new Basel III bank capital rules are prompting lenders to "deleverage" or rein back risky activities - which require more collateral - in order to reduce the overall need for expensive capital.

From Reuters • Jan. 5, 2014