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The process of a company repaying debt and issuing equity in order to alter its capital structure. A capital structure is how a company finances itself. Some (though not all) analysts believe that minimizing debt and maximizing equity can reduce the company's risk because, most of the time, paying coupons on debt is required while paying dividends on equity is not. Degearing is therefore a strategy to decrease risk while also maintaining the same level of financing. See also: Deleverage.