Learn how to calculate the Tier 1 leverage ratio for banks, understand its significance, and assess capital adequacy ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

In technical terms, leverage is the ratio between the amount of money you have in your account and the total size of positions the broker allows you to take. You’re using leverage every time you enter ...

A recent op-ed on this blog by Paul Kupiec misstates the Clearing House’s criticism of the supplementary leverage ratio. Kupiec’s article indicates that the Clearing House’s position is contained in a ...

Learn how the long-term debt-to-total-assets ratio reveals a company's financial health by showing what portion of its assets is financed by long-term debt.

Regarding Thomas Hoenig’s “Why ‘Risk-Based’ Capital Is Far Too Risky” (op-ed, Aug. 12): Mr. Hoenig takes issue with our criticism of the leverage ratio, arguing, “The leverage ratio has proven most ...

In finance, leverage is a measure of a company's debt in relation to its total assets. When a business borrows heavily to finance growth plans, it stands to profit more when business is good. But ...

Momentum is building to improve capital rules. Recently, Federal Reserve Chair Janet Yellen publicly acknowledged that aspects of the banking agencies’ supplementary leverage ratio “may be having ...

Theory Ignored Yes, this headline looks silly. Almost nine years into a powerful rally, and with the Dow suddenly caving, I bring up the subject of leverage. Talk about a columnist high on the fumes ...

Leverage trading offers traders the opportunity to amplify their positions by borrowing funds, potentially increasing both profits and losses. While this strategy can significantly boost returns with ...