Deutsche Bank: Some of the Things You've Been Told About Buybacks Are Wrong
Monday myth busting.
Companies' Use of Cash: Buybacks vs. Investment
This article is for subscribers only.
Rumors of share buybacks' death have been greatly exaggerated, according to Deutsche Bank analysts.
While such buybacks have helped propel the equity market's recovery in the years following the financial crisis, many analysts have been calling for a slowdown in share repurchases as corporate leverage increases and investors stop rewarding companies for buying back their stock. However, Deutsche Bank analysts led by Binky Chadha reckon there is still plenty of room to go, firing off a note to clients about the "myths" and "realities" of share buybacks.