View Single Post
Old 10-03-2017 | 02:26 PM
  #17  
Sunvox's Avatar
Sunvox
Line Holder
 
Joined: Sep 2010
Posts: 1,725
Likes: 0
From: UAL retired
Default

Originally Posted by LeeFXDWG
Interesting analysis. Perhaps that’s the reason for the bond.

Lee

Borrowing by corporations serves to increase balance sheet leverage and thereby enhance ROE. Sometimes corporations use the money to buy back shares because they believe they can get a return greater on their own shares than the coupon, in this case 4.25% or sometimes they use the money for capital investments like airplanes. Let's hope it's the latter and not the former.
Reply