English Reference

Word

drawdown

Phoneticsdraw·down, stress on the first syllable

/ˈdɹɔˌdaʊn/

Countable noun

Definition

n. a drop in value from a high point, or money you take out of an account or fund. Investors use it to talk about losses or withdrawals.

n. a decline from a prior peak in the value of an investment, fund, or account, or a withdrawal of funds provided under a loan facility. Also used for a planned reduction in military forces or stored supplies.

Examples

“She takes a monthly drawdown from her savings.”

“The fund suffered a 15% drawdown after the market sell-off before recovering later in the year.”

“After years of deployment, the military's drawdown from the region left local allies uncertain about long-term security commitments.”

Examples

simple

“She takes a monthly drawdown from her savings.”

contextual

“The fund suffered a 15% drawdown after the market sell-off before recovering later in the year.”

complex

“After years of deployment, the military's drawdown from the region left local allies uncertain about long-term security commitments.”

Collocations

Common phrases and expressions where native English speakers use the word “drawdown” in context.

Verb

01. avoid drawdown

“Stop-loss orders can help investors avoid major drawdown.”

verb + noun

02. drawdown deepens

“The drawdown deepened as tech stocks continued to slide.”

noun + verb

03. drawdown eases

“The drawdown eased after central banks signalled rate cuts.”

noun + verb

04. drawdown persists

“If the drawdown persists, the manager may cut risk exposure.”

noun + verb

05. drawdown widens

“The drawdown widened to 25% amid rising interest rates.”

noun + verb

06. experience drawdown

“The fund experienced a drawdown of 12% in March.”

verb + noun

Adjective

07. deep drawdown

“Investors endured a deep drawdown before prices rebounded.”

adj + noun

Noun

08. depth of drawdown

“The depth of drawdown surprised even seasoned traders.”

noun + prep + noun

09. income drawdown

“At 55, she moved her pension into income drawdown.”

noun + noun

10. enter income drawdown

“Many over-55s enter income drawdown rather than buy an annuity.”

11. experience a maximum drawdown

“The strategy experienced a maximum drawdown of 15%.”

12. face a prolonged drawdown

“Value investors faced a prolonged drawdown before recovery.”

Usage

Commonly followed by 'from' for what is reduced and 'on' for a loan or fund that is accessed.

Real-World Examples

“Inventories of the motor fuel have dropped 15 million barrels in the first three weeks of March, the biggest drawdown for the period since at least 1990, when EIA began reporting on weekly inventories.”
Reuters 23 Mar 2011

Etymology

Deverbal from draw down.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Synonyms

Antonyms

Word family

Related words

Domains

EconomicsFinanceLawMilitary

This entry

Exam level
CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
Frequency
Occasional
Level
C1 · Advanced
Updated

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