Corporate borrowing has been rising fast – and while trade investment remains low,payouts to shareholders have soaredWhen companies are borrowing like never before and yet investment is low, it is fair to examine what they are doing with the money.
They could be stockpiling huge sums to guard against a no-deal Brexit. They could be cutting prices to win market share and emerge from the current downturn with a larger customer base. Or they could be paying their workers an inflation-busting pay rise to make up for the freezes and low pay awards that characterised the years following the financial crash.
Companies that have over-borrowed and live in apprehension of their shareholders need one thing: cheap interest ratesContinue reading...
Source: theguardian.com