This paper analyses how the Basel III leverage ratio (Tier 1 capital/exposure) behaves over the cycle. The analysis … headquartered in 14 advanced economies for the period 1995-2012, we find that the Basel III leverage ratio is significantly more …

. We document evidence that marked to market leverage is strongly procyclical. Such behaviour has aggregate consequences …

, leverage and flows into bond funds, on the one hand, and dollar credit extended to non-US borrowers, on the other. We find that … prior to the crisis, banks drew on low funding rates and low-cost leverage to extend dollar credit to non-US orrowers. After …

of leverage allow them to build up large positions. Yet the monitoring of systemic risks posed by the build-up of … leverage is hampered by incomplete information on hedge funds' balance sheet positions. This paper describes how an extension … of funding leverage used by hedge funds. The approach can take into account non-linear exposures through the use of …