It's yet another way the Fed's rate hikes are impacting financial markets.
Share on email The pace of stock buybacks among companies in the S&P 500 has fallen by $106 billion in the space of five quarters, to below pre-pandemic levels.Stock repurchases are sometimes financed out of profits, but when they're not they're a way of building leverage.
When rates are low, companies borrow money cheaply and use that money to buy back their stock. The amount of debt outstanding goes up while the amount of equity outstanding goes down — a tried-and-true way to goose stock returns, or at the very least prevent dilution from massive equity grants to executives., given that it's one of the few areas where lawmakers on both sides of the aisle are OK with raising taxes in the face of fiscal constraints.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Fed's Bostic: No urgency for the Fed to do anything moreCommenting on the Federal Reserve's (Fed) policy outlook, 'I am not in a hurry to raise, not in a hurry to reduce either,' Atlanta Fed President Rapha
続きを読む »
Fed May Be Closer to Bailing Out the US Economy, Stock Market Than It Lets OnMarket Overview Analysis by Michael Lebowitz covering: . Read Michael Lebowitz's latest article on Investing.com
続きを読む »
30-Year Treasury Yield Tops 5% for First Time Since 2007Yields are rising sharply this week as the Fed's higher-for-longer message sinks in.
続きを読む »
Bearish bets on Asian currencies firm on hawkish Fed rhetoric, rate woesBearish bets on Asian currencies firm on hawkish Fed rhetoric, rate woes
続きを読む »
DoubleLine's Gundlach says Fed's 'higher for longer' stance a problem By ReutersDoubleLine's Gundlach says Fed's 'higher for longer' stance a problem
続きを読む »
Fed's Bostic: Rising long bond yields not having excessive impact on economy By ReutersFed's Bostic: Rising long bond yields not having excessive impact on economy
続きを読む »