Record Bond Buybacks Show Treasurers Making Hay While Sun Shines
- Rising borrowing costs signal repurchase window may be closing
- Companies also spending cash to lower debt costs, leverage
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Corporate executives are facing the possibility that debt markets in Europe may never be as good as they were in 2015.
Borrowers including Telecom Italia SpA and LafargeHolcim Ltd. bought back about 35 billion euros ($38 billion) of their own bonds, a record according to data compiled by Citigroup Inc. which tracks all currencies and also includes companies in Russia and former Soviet republics. Treasurers have taken advantage of cheap funding costs and are using cash piles to buy the debt as they seek to cut interest payments and reduce their leverage.