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