Working Paper

Emerging Market Nonfinancial Corporate Debt : How Concerned Should We Be?


Abstract: Nonfinancial corporate (NFC) debt in emerging market economies (EMEs) has tripled since the global financial crisis (GFC), reaching roughly $25 trillion, or 112 percent of GDP, in mid-2016. In this note, we assess corporate vulnerabilities by looking at two common metrics related to debt-servicing capacity: leverage (the ratio of debt to equity), and the interest coverage ratio (the ratio of earnings to interest expense).

https://doi.org/10.17016/2573-2129.32

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: IFDP Notes

Publication Date: 2017-06-01

Number: 2017-06-01