Record-Low Yields Should Spur Buybacks, Tilson Says
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U.S. companies should use record low interest rates to issue debt and buy back stock to boost per-share earnings, according to hedge-fund manager Whitney Tilson.
Those with high credit ratings and enough cash are ideal candidates to sell bonds and cut their dividends to raise money for repurchasing their own equities, said Tilson, whose Tilson Focus Fund beat 96 percent of peers in the past five years, according to data compiled by Bloomberg.