The leverage ratio was introduced as an essential pillar of the Basel III Accord. It backstops the risk-weighted capital requirements for credit exposures and provides a capital floor that mitigates ...

Leverage ratios can help option traders make the most out of every dollar invested, and determine how much of a profit a trade could potentially yield. The leverage ratio -- the leverage a trader gets ...

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 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 ...

Interest in municipal closed-end funds (CEFs) vs. municipal bonds often stems from higher return potential—this is mostly due to the use of leverage in municipal closed-end funds. Leverage could ...

Explore how the total debt-to-capitalization ratio helps measure a company's leverage. Learn the formula, implications, and ...