Relative to the U.S., emerging markets corporate bond markets are exhibiting healthier and improving credit metrics. This is illustrated by the dramatic decline in net leverage over the past three years, compared to U.S. levels that have not shown the same improvement.
Emerging Markets vs U.S. Net Leverage
Source: Bank of America Merrill Lynch. Data as of May 2019.
This decline has been driven by lower debt levels and higher revenue growth, particularly in the high yield segment of the market. High yield total debt has declined 5% versus one year ago, with Latin America