- Buybacks Drop as Debt Costs Rise, Curtailing Stock Returns
-
Buybacks have faced pressure as higher interest rates make debt financing more expensive.
-
BofA US stock buybacks fell 3% in Q3 after a 26% drop in Q2.
-
Weaker debt issuance suggests buybacks will remain muted going forward.
-
Companies are finding it harder to raise debt amid higher interest rates.
-
Slowdown in buybacks could further limit equity returns.