Re:Companies Use Borrowed Billions to Buy Back Stock, Not to...
by prostoalex on Saturday August 10, 2019 @07:36PM
(#20665217)
US corporate debt markets are fairly mature, so the investment and cash influx events are decoupled. Itβs not like modern large companies get paid on Mondays and allocate capital by Tuesday.
Companies can always sell more bonds or shares when they have a major investment coming, the stock / bond buybacks buy time, improve credit standing and create a cushion for that future investment event.
Companies can always sell more bonds or shares when they have a major investment coming, the stock / bond buybacks buy time, improve credit standing and create a cushion for that future investment event.