Portuguese translation: descapitalização do mercado
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English to Portuguese translations [PRO] Bus/Financial - Finance (general) / Global Market analysis
English term or phrase:De-equitisation
Context: De-equitisation” could remain a major driver for higher equity prices in 2007
Explanation: The overall picture in terms of new listings has acquired even more importance due to the proliferation of the new buzzword, “deequitisation” of the markets. This basically relates to capital being withdrawn from the market, either in the form of public to private takeovers, or other repayment of capital (share buybacks or dividends)
ONE of the most powerful themes in global capital at the moment is called "de-equitisation", the shrinking of equity markets as companies return capital to shareholders and replace it with debt. In the 1980s it was called borrowing and brought many to grief by 1990; now it's de-equitisation.
This is the practice of companies reducing their equity capital in favour of substituting fixed interest financing while interest rates are low, and distributing cash for which they cannot find an investment outlet back to shareholders by buying back the company's own shares.