Buybacks may be an easy target but they’re just one way in which companies can use their cash when that’s the best return on investment, says Mike Ryan, chief investment officer for the Americas at UBS Global Wealth Management.
“While everyone’s saying it’s just financial alchemy, I would say it’s probably a prudent deployment of excess cash,” he says. “Buybacks are a function of corporate treasurers making decisions on how they want to deploy capital. If you ask me whether I think this market has been artificially held up by buybacks, I don’t.”
This article was provided by Bloomberg News.