A version of this story first appeared in CNN Business’ Before the Bell newsletter.
But America’s publicly traded companies are flashing a key sign of economic uncertainty — they’ve been hoarding cash.
And companies with existing and expensive debt in a high-interest rate environment would likely want to use their cash to pay it down.
“We interpret this correlation as evidence that cash reserves act like insurance against sudden economic shocks,” wrote the researchers.
The missing bolts are apparently not the only problem.
Persons:
America’s, ” Vijay Govindarajan, ”, Dartmouth’s Govindarajan, Anup Srivastava, Chandrani Chatterjee, Max, Jennifer Homendy, Homendy, Evan Spiegel, Tuesday’s, Read
Organizations:
CNN Business, Bell, New York CNN, CNN, Moody’s Investors, Dartmouth’s Tuck School of Business, University of Calgary’s Haskayne School of Business, University of Texas, JPMorgan, NTSB, Boeing, National Transportation Safety, Max, Alaska Airlines, United Airlines, Wall Street, Meta
Locations:
New York, Ukraine, Arlington, Alaska, Oregon, ”