Buybacks Are Falling Out Of Favor; S&P 500 Net Debt/EBITDA Up 32% Since The Start Of 2015: GS

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Elevated Levels Of Debt And Rising Borrowing Costs May Restrain Debt-Financed Buybacks.

According to Goldman Sachs’s US Weekly Kickstart research booklet, investors are beginning to reverse the long-term trend of rewarding firms spending cash to repurchase shares, as corporate debt levels soar and equity valuations trade close to all-time highs. Q1 Buybacks Break Post-Recession Records This conclusion is based on the performance of Goldman Sachs’ ‘buyback basket’ of…