Corporate America's debt is too big for investors to ignore
It's getting awfully difficult for investors to ignore Corporate America's mountain of debt.
Fears of an economic slowdown -- or even recession -- have turned a spotlight on the debt that businesses piled up during the past decade, when borrowing costs were historically low.
For the first time since the Great Recession, investors want companies to prioritize paying down debt rather than investing in the future or share buybacks and dividends, according to a Bank of America Merrill Lynch survey of global fund managers.
Forty-six percent of fund managers surveyed think corporate balance sheets are overleveraged, Bank of America said. That's a record high for the survey.
https://www.msn.com/en-us/money/markets/corporate-americas-debt-is-too-big-for-investors-to-ignore/ar-BBRaDPu?li=BBnbfcN
Maybe they should have used their tax cuts for that purpose instead artificially inflating the price of their stock through buy backs.