European Investors Riding Buyback Boom Face Risk of Pullback
- Buyback yield in Europe is the highest since 2011, BofA Says
- Index of firms repurchasing shares has outperformed Stoxx 600
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A surge in stock buybacks in Europe has kept investors happy this month even as economic uncertainty grows. The boost may not last.
An index of companies that have announced plans to repurchase shares has jumped 14% this year, outperforming the broader European market. But margin pressure from inflation and the need to preserve cash are likely to make it harder for firms to sustain such programs from here on.