Is credit the new king for Asian corporates?

Asian companies are once again borrowing more, but it’s not yet time to worry.

Asian companies have earned a reputation as cautious users of credit in recent years. From 2002 to 2007, leverage among non-financial corporates in Asia fell by a quarter, according to Morgan Stanley.

This wasn't voluntary. After businesses spent the 1990s going crazy with their credit cards, the Asian financial crisis put a stop to unrestrained corporate borrowing and forced banks to tighten their lending policies. As a result, many Asian companies learned how to grow using, of all things,...

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