Search
 
News

Bondholders Teach Shareholders Who’s Boss

Corporate America wake-up call on borrowing to fund stock buybacks: Once-acquiescent bondholders are balking at increasing leverage to reward equity owners.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Amid the fallout of the General Electric Co. (GE) debacle, a delicate but crucial social contract between shareholders, bondholders, and corporate America is being quietly redrawn.

For a decade since the financial crisis, U.S. companies have piled up debt to fund generous equity buybacks, helping supercharge a fourfold jump in the S&P 500 Index. But as scrutiny on companies’ financial health mounts, creditors are seeking to wrestle back control and curb these balance-sheet-be-damned maneuvers.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Recommended Stories

Are Privacy and Cybersecurity the Next Frontier for ESG?

Are Privacy and Cybersecurity the Next Frontier for ESG?

Victoria Hudgins |

Data privacy and protection might be of increasing importance to regulators, investors and clients but most organizations don't currently include such topics in their ESG planning—including law firms.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.