Big Oil Companies Binge on Debt

Oil price rut fuels soaring debt levels for energy companies Source: The Wall Street Journal Some of the world’s largest energy companies are saddled with their highest debt levels ever as they struggle with low crude prices, raising worries about their ability to pay dividends and find new barrels. Exxon Mobil Corp., Royal Dutch Shell PLC,…

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Corporate Bond Market Shows Fears of a Fed Rate Rise

Rise in interest rates will impact corporate borrowing programs Source: The Wall Street Journal The prospect of a Federal Reserve rate rise has investors in the U.S. credit markets less willing to make long-term bets. That may sound counter-intuitive, given that two exchange-traded funds that track long-term corporate bonds are both up 14% this year, making…

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Debt is fuelling the most stock buybacks since 2001

Bond sales, low interest rates are powering share repurchases Source: The Globe and Mail As earnings stagnate, U.S. companies looking to charge up their stock returns with repurchases are turning to debt markets like no time since the dot-com bubble. Led by Apple Inc. and CBS Corp., S&P 500 constituents have rushed to sell bonds to…

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