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Shrinking Pool of Bad Debts Is a Good Sign for Emerging Markets

  • Developing nation corporate debt has gained since March rout
  • ‘Zombie’ companies can muddle through the global recession
    
Photographer: Qilai Shen/Bloomberg

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The pile of distressed debt in emerging markets that ballooned in March is quickly shrinking, suggesting to some investors that fears of a wave of corporate collapses are overblown.