over-leveraging
[/ˌoʊvər ˈlɛvərɪdʒɪŋ/]
noun, gerund form / verb (present participle)
alavancagem excessiva
1. The practice of using excessive debt or borrowed capital to finance investments or business operations, increasing financial risk beyond prudent levels
The company's over-leveraging strategy left it vulnerable to economic downturns.
A estratégia de alavancagem excessiva da empresa a deixou vulnerável a crises econômicas.
2. In finance, taking on more debt than can reasonably be repaid, often using assets as collateral
Many banks warned against over-leveraging before the 2008 financial crisis.
Muitos bancos alertavam contra a alavancagem excessiva antes da crise financeira de 2008.
3. The act of magnifying investment returns or losses by using borrowed money beyond safe limits
Retail investors engaging in over-leveraging can face devastating losses.
Investidores de varejo que praticam alavancagem excessiva podem enfrentar perdas devastadoras.
Over-leveraging became a critical term in financial discourse following the 2008 global financial crisis. In both Brazilian and American contexts, it represents a cautionary concept taught in business schools and discussed extensively in financial regulation. Brazilian companies often discuss this in Portuguese business media, particularly in São Paulo's financial district, while the concept is central to US financial literacy and regulatory frameworks.
NYC Slang
going in too hard / betting the house
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