
The Mechanics of Deleveragings - And Where the Current One Fits In | Andy Constan
Excess Returns
Understanding Deleveraging in Financial Markets
This chapter explores the mechanics of deleveraging in financial markets, particularly focusing on the impacts of overleveraging on investor behavior and asset price fluctuations. It examines the dynamics of carry trades, illustrative historical examples, and the responses of central banks to financial crises. The discussion highlights the implications for investors navigating an environment marked by rising borrowing costs and currency fluctuations.
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