debt reduction - Trading Studio

Growth of $10,000 in Deleveraging strategy vs S&P 500 (2000-2025) - Canada (TSX)

canada stocks

Canada's Best Deleveraging Result Is a Risk Story, Not a Return Story

D/E reduction + ROE > 8% screen on TSX stocks from 2000-2025. CAGR 11.28% vs TSX Composite 5.08%. Down capture 54.5%, +6.20% excess. Max drawdown -39.8% - lower than TSX. Best Sharpe globally across 16 exchanges. Strong alpha with lower drawdown. Full data, SQL screen included.

Growth of ₹10,000 in India Deleveraging strategy vs Sensex (2001-2025, NSE stocks)

india stocks

India Is the Exception: Deleveraging Earns +4.70% Annual Excess on NSE

D/E reduction + ROE > 8% screen delivers 4.70% annually vs Sensex in India. CAGR 15.82%, down capture 73.5%, total return 2,789%. The signal works here because balance sheet discipline is genuinely scarce in India's growth economy.

Growth of $10,000 invested in the Deleveraging strategy vs S&P 500 from 2001 to 2025, US stocks with clean data.

debt reduction

Deleveraging as a US Stock Signal: 11.22% CAGR with Clean Data

We backtested D/E reduction with ROE > 8% on US stocks from 2001-2025. 11.22% CAGR vs 8.02% for SPY, a +3.20% annual excess. The key: filtering FMP's FY2012 zero-D/E errors (30% of stocks affected). With clean data, the signal works consistently across all 13 global markets tested.