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> $8T borrowed ... for stock repurchases Aren't stock repurchases funded by cash on hand, like Apple does?

howmayiannoyyou 4y ago
Debt is often used. But nowhere near the $8t this poster is whining about in their tantrum.
marcus0x62 4y ago
Apple has issued debt to buyback shares [0]. One problem many large tech companies have is that their cash is stranded overseas due, in part, to…creative…tax/accounting arrangements [1]. They lobbied [2] for years for a tax break to repatriate this cash, and eventually got a tax break on repatriation for “foreign” profits close to what they had asked for [3]. Before that law was passed, it was common to borrow to fund share buybacks due to not wanting to pay the repatriation tax. As far as I can tell, it is still common due to the low interest rate environment of the last several years. 0 - https://www.nasdaq.com/articles/apple-shores-up-%2414b-in-debt-for-share-buybacks-dividends-report-2021-02-02 https://www.nasdaq.com/articles/apple-shores-up-%2414b-in-de... 1 - https://www.news.com.au/technology/online/security/double-irish-dutch-sandwich-tax-loophole-finally-closes-after-threeyear-grace-period/news-story/2963949f4525e13a8ac2cb8339361f80 https://www.news.com.au/technology/online/security/double-ir... 2 - https://money.cnn.com/2011/02/16/news/companies/repatriation_lobby.fortune/index.htm https://money.cnn.com/2011/02/16/news/companies/repatriation... 3 - https://marketrealist.com/2018/02/cisco-bringing-67-billion-back-states/ https://marketrealist.com/2018/02/cisco-bringing-67-billion-...
JustAPerson 4y ago
A substantial portion is funded with newly issued debt. https://fortune.com/2019/08/20/stock-buybacks-debt-financed/ https://fortune.com/2019/08/20/stock-buybacks-debt-financed/ https://www.bloomberg.com/news/articles/2019-01-27/debt-financed-share-buybacks-dwindle-to-lowest-level-since-2009 https://www.bloomberg.com/news/articles/2019-01-27/debt-fina...
anm89 4y ago
The parent is just saying hyperbolic things to bolster their rant. Their is no direct connection between the Fed's balance sheet and buy backs. The connection you could make is that by creating generally easy financial conditions like a strong market and low rates, they enabled the atmosphere which promoted the buybacks. But this is far from a direct connection

Debt is often used. But nowhere near the $8t this poster is whining about in their tantrum.

Apple has issued debt to buyback shares [0]. One problem many large tech companies have is that their cash is stranded overseas due, in part, to…creative…tax/accounting arrangements [1]. They lobbied [2] for years for a tax break to repatriate this cash, and eventually got a tax break on repatriation for “foreign” profits close to what they had asked for [3]. Before that law was passed, it was common to borrow to fund share buybacks due to not wanting to pay the repatriation tax. As far as I can tell, it is still common due to the low interest rate environment of the last several years. 0 - https://www.nasdaq.com/articles/apple-shores-up-%2414b-in-debt-for-share-buybacks-dividends-report-2021-02-02 https://www.nasdaq.com/articles/apple-shores-up-%2414b-in-de... 1 - https://www.news.com.au/technology/online/security/double-irish-dutch-sandwich-tax-loophole-finally-closes-after-threeyear-grace-period/news-story/2963949f4525e13a8ac2cb8339361f80 https://www.news.com.au/technology/online/security/double-ir... 2 - https://money.cnn.com/2011/02/16/news/companies/repatriation_lobby.fortune/index.htm https://money.cnn.com/2011/02/16/news/companies/repatriation... 3 - https://marketrealist.com/2018/02/cisco-bringing-67-billion-back-states/ https://marketrealist.com/2018/02/cisco-bringing-67-billion-...

JustAPerson 4y ago

A substantial portion is funded with newly issued debt. https://fortune.com/2019/08/20/stock-buybacks-debt-financed/ https://fortune.com/2019/08/20/stock-buybacks-debt-financed/ https://www.bloomberg.com/news/articles/2019-01-27/debt-financed-share-buybacks-dwindle-to-lowest-level-since-2009 https://www.bloomberg.com/news/articles/2019-01-27/debt-fina...

anm89 4y ago

The parent is just saying hyperbolic things to bolster their rant. Their is no direct connection between the Fed's balance sheet and buy backs. The connection you could make is that by creating generally easy financial conditions like a strong market and low rates, they enabled the atmosphere which promoted the buybacks. But this is far from a direct connection