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Goldman Buyback Desk Saw Orders Rise ‘Dramatically’ During Rout

  • Companies are ‘senstive’ to share prices, David Kostin says
  • Repurchases have helped stem losses during past market turmoil
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Goldman Buyback Desk Orders Rose 'Dramatically' in Rout: Kostin

As investors suffered through the year’s biggest equity rout Monday, one of the market’s most important players emerged as a buying force.

Corporate America bought back shares at a furious pace as the S&P 500 plunged 3%, according to activity at the Goldman Sachs Group Inc. unit that executes repurchases for clients. Since then, the equity benchmark has rebounded 2.3%. A similar surge in buybacks during May’s rout helped establish a market bottom.