Capital Markets Winter 2021
I
War Chests Road to Recovery
• Companies are awash in savings with S&P 500 cash balances surging by more than one third over the past year
I
• This could potentially lead to increased M&A and share repurchase activity
II
Corporate Cash Surges…Will Buybacks Follow?
Cash
Buybacks
III
2.0
4%
After prior surges in cash, buybacks have increased
1.8
IV
3%
1.6
1.4 $ Trillions
Buyback Yield
2%
V
1.2
1.0
1%
2016
2017
2018
2019
2020
VI
Source: FactSet and S&P. S&P 500 cash balances through December 2020 and buybacks through 3Q20.
7
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