Leverage ✭ < RECENT >

: Assesses a firm’s ability to pay interest on its debt with its current earnings (EBIT / Interest Expense).

: The Financial Stability Board (FSB) released a final report specifically addressing risks created by leverage in Nonbank Financial Intermediation (NBFI), such as hedge funds and life insurers.

: Measures the percentage of assets financed through debt. Leverage

: Managed by the Office of Financial Research , this provides ongoing reports on leverage by strategy, size, and borrowing type (e.g., repo or prime brokerage) based on SEC Form PF data. Core Leverage Reporting Metrics

Authoritative bodies monitor leverage levels to assess risks to the broader financial system: : Assesses a firm’s ability to pay interest

Reports for individual companies or funds typically utilize these foundational ratios to gauge risk:

: Often used by credit agencies, calculated as (Total Debt - Cash) / EBITDA . Leverage in Nonbank Financial Intermediation: Final report : Managed by the Office of Financial Research

: The November 2025 report noted that vulnerabilities from financial-sector leverage remain notable, with hedge fund leverage reaching historical highs in early 2025.