Companies Have Been Loading Up On Debt In The Last Few Years

Although total US credit market debt-to-GDP is trailing down the last few years (as shown in this post) non-financial companies have been loading up with debt. A lot of these companies seem to use the money for share buy back programs. A prime example of this is Apple’s (AAPL) recent bond issue but a company like Home Depot (HD) is also doing it. This generally improves a company’s EPS and justifies a higher stock price.

FRED St Louis fed total credit liabilities non financial companies


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