Buybacks Lose Favor as Issuances Grow

The video discusses the decline in share buybacks in Europe and the US, highlighting that European buybacks have halved since 2018, and US companies, excluding tech, are issuing more shares than they are buying back. The discussion includes insights from SoC Gen on capital issuances and the shift from debt-funded to equity-funded buybacks. This shift is driven by companies needing to support their balance sheets during the crisis, leading to increased stock and credit issuances.

What trend is observed in European stock buybacks since 2018?

• They have more than halved.

• They have remained the same.

• They have doubled.

• They have slightly increased.

In the US, excluding tech, what is the current trend in stock buybacks?

• Companies are buying back more shares than issuing.

• Companies are issuing more shares than buying back.

• Buybacks have completely stopped.

• There is no change in buyback trends.

How much has been put into the market through buybacks over the past three years?

• $1 trillion

• $2.2 trillion

• $3 trillion

• $4 trillion

What is the expected trend for companies in terms of debt and equity?

• Debt levels will remain unchanged.

• Equity-funded debt buybacks will become more common.

• Debt-funded share buybacks will increase.

• Companies will stop issuing stocks.

Why are companies turning to equity issuances during the crisis?

• To avoid issuing any stocks.

• To reduce their stock prices.

• To support their balance sheets.

• To increase their debt levels.