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US corporate debt markets are fairly mature, so the investment and cash influx events are decoupled. It’s not like modern large companies get paid on Mondays an
by prostoalex 7y ago
US corporate debt markets are fairly mature, so the investment and cash influx events are decoupled. It’s 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.
- mycall 7y agoCould all this stock buyback cause an acceleration into the company merger trend (or the opposite)?