Corporate Tax Capex Depends on Opportunities, Says Kotok

The video discusses the shift from capital returns like buybacks and dividends to increased capital spending and M&A activities. It questions whether these moves are defensive or offensive, citing examples like the CVS-Aetna deal. The impact of tax reform on corporate cash reserves and capital expenditures is analyzed, with a focus on whether reduced tax rates will alter corporate strategies. The video also highlights opportunities in municipal bonds due to the tax bill, emphasizing their value in high-tax states.

In what ways might tax reform impact corporate cash levels and spending?

What are the characteristics of the current bond market as described in the text?