What does Microsoft's $7.2 billion purchase of Nokia have to do with Verizon's $130 billion repurchase of its own business from Vodafone? They reflect the end of a period of historically low interest rates in which debt was cheap and big companies' stockpiles of cash ballooned. As the financial crisis recedes, tech giants are eager to put that money to work, and they want to do so before rates increase.
"Companies see that the train is leaving the station."
"Corporations around the world have been amassing cash since the 2008 crisis," says Eric Jackson of Ironfire Capital. Over this same period the US central bank pushed interest rates down to try and stimulate the damaged economy. But in recent months the Fed has been showing signs that...
via The Verge - All Posts http://www.theverge.com/2013/9/3/4689684/debt-and-taxes-why-a-wave-of-big-tech-deals-is-on-the-horizon
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