Great chart that comes courtesy of Datastream/Goldman Sachs Global Investment Research that shows the percentage of listed European companies that currently...

David Scutt

Scutt Partners

Great chart that comes courtesy of Datastream/Goldman Sachs Global Investment Research that shows the percentage of listed European companies that currently have corporate bond yields lower than dividend yields. In light of chatter this week that the ECB could potentially start buying commercial paper in the secondary market by the end of this year, you have to wonder how effective such a measure would be to spur economic growth within the Eurozone? Will lower borrowing costs be used for reinvestment purposes or simply allow for firms to buy back stock given ever-widening yield differentials? Something to ponder.


David Scutt
David Scutt
Independent Market Strategist
Scutt Partners

David is a Director of Scutt Partners Pty Ltd and has successfully worked in the financial services markets over the past 12 years with both large and smaller banking groups. He has provided strategic financial analysis for currency and interest...

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