Financial Times FT.com

Concern as companies hoard cash

By Paul J Davies in London

Published: March 18 2009 23:30 | Last updated: March 18 2009 23:30

Big investment-grade companies appear to be hoarding cash in the face of economic uncertainty as they raise record amounts of debt in the bond markets while cutting dividends, share buybacks and capital expenditure.

In the booming global issuance market for corporate debt, companies globally have already raised $353bn worth of bonds, which is $224bn more than they are due to repay by the end of the first quarter, according to data from Dealogic.

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