Credit Quality Shows Signs of Having Peaked
- Companies with BBB ratings boosted their share buybacks
- Meanwhile, interest expense rose faster than earnings
Corporate-bond investors have been snatching up debt all year.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
In 2022, after the Federal Reserve started raising rates at the fastest pace in decades, some blue-chip US companies vowed to start cutting their debt loads. Those days may be over now.
Companies with BBB ratings boosted their share buybacks in the latest quarter for the first time since early 2023, and accelerated their capital expenditure growth after five quarters of slowing, according to Barclays Plc strategists.