What is the difference between Market Leverage and the Leverage Ratio analytics?

Answer

The market leverage is the weighted average ratio of the market value (MV) of all debt instruments of an infrastructure company to its MV of Debt+ MV of Equity. It only applies to companies that use debt financing, if a company has no debt instruments, it is excluded from this metric. These MVs are based on our asset pricing models for debt and equity.

The leverage ratio refers to the weighted average of the leverage risk factor across all infrastructure companies. The leverage risk factor itself is defined as the ratio of the book values of the senior liabilities to total assets.