Capital Markets: Observations & Insights
Degrees of Debt
Solid Ability to Pay
• Corporations are generally in a good position to be able to service their debts
‒ Interest coverage (EBIT/interest expense) is higher than it has been on average over the past 20 years
MSCI AC World Ex-U.S.
Global interest coverage is relatively strong
Source: FactSet. Interest coverage is earnings before interest and taxes (EBIT) divided by interest expense.
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