Posted by & filed under Market Analysis.

Description:  Mark Gongloff discusses the recent eagerness of blue-chip companies to issue fresh debt, and the eagerness of investors to buy it.

Source: Marketwatch.com  – video report
 
Date: 09/09/2010

Link: http://www.marketwatch.com/video/asset/news-hub-blue-chip-borrowers-issue-debt-in-droves/5857959B-668B-40AD-A5D5-16723605B3B2

Questions for discussion:

  • Why are these firms selling bonds?
  • If these analysts are right about financial management thinking at these firms, what should investors be doing?
  • What do you think these firms plan to do with the cash they are raising?
  • What does this strategy say about management’s view toward future business activity?

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