Corporate Buybacks Largest Buyer of Stock

Last month, Bloomberg highlighted the high level of company buybacks, noting that since the mid-2000s “corporations and investors have switched positions as the bigger buyer of stocks.” Specifically, “inflows from equity funds exceeded corporate buybacks every year in the late 1990s,” but corporate buybacks hit record levels in 2007 and have remained high. The article suggests that “the reluctance of investors to pile into equities has left corporate America the largest source of cash throughout the bull market,” drawing on an interview with Howard Silverblatt of S&P Dow Jones Indices. “Last year, corporations beat all other groups as the biggest […]