The Great Debate of 2021: What to Do With All That Cash?
In the wake of Covid-19, corporations this year issued trillions of dollars of debt to make it through. Now, according to Josh Lohmeier, head of North American investment-grade credit at Aviva Investors, the big question for next year is: What should and will they do with all that cash? He joins the “What Goes Up” podcast to discuss.
Some highlights of the conversation:
“Everybody took down lots of debt, to build a cash hoard…And so the great debate of 21 is going to be what do they do with that cash? Are they going to pay it back? Are they going to give it to shareholders? Are they going to do M&A? Are they gonna, are they just gonna buy back debt. And so we're in this environment where it's certainly in everyone's best interest to stabilize your leverage, stabilize your ratings and behave yourself.”
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