One Outcome of Fewer Buybacks? A Record of Leveraged Buyouts

Legislation aimed at restricting share buybacks would likely contribute to a record string of leveraged buyouts if enacted, Canaccord Genuity says.

"An LBO boom coupled with a restriction on buybacks would likely mean even fewer surviving companies, higher stock prices at the end of this cycle, and an even worse financial disaster following the peak due to the added leverage," writes analyst Brian Reynolds in a note.