Companies Stockpiling Cheap Debt Capital

Over the past few years, publicly traded companies have largely completed the productivity gains that can be made by cutting jobs and refinancing debt. And although this has helped bottom-line earnings and helped to propel these companies' stock prices, it doesn't do anything for top-line revenue growth, except for the banks that supply the debt capital.

Companies have been able to increase top-line revenue by using cheap debt capital that they use as a carry trade into higher-yielding financial assets, but this does nothing for revenue from core operations, and it doesn't create jobs....525 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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