The Financing Gap That May Finally Slow Down U.S. Share Buybacks
- Companies spending more than they make could cut into buybacks
- Widening credit spreads will also hinder repurchasing
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American companies are sending more money out the door for things like plant upgrades and dividends than they have in the bank. A casualty of the deficit, says one research firm, could be one of the stock market’s biggest support structures: share buybacks.
QuickTake Buybacks and Dividends