The Surprising Leverage Profile of EM Corporates
It may surprise some investors to learn that the leverage profile of emerging market corporations appears to be in better shape than that of their US counterparts. Maybe it’s a matter of “been there, done that.” Following the 2015 and 2016 commodity downturn, EM corporations tied to the oil and gas and metals and mining sectors undertook broad-based deleveraging efforts. Simultaneously, we witnessed Chinese policies aimed at reducing corporate leverage.
