According to data compiled by Bloomberg, U.S. corporations have a record $1.73 trillion of cash sitting on their balance sheets as of the end of the first quarter.
This comes even as executives ramp up cash dividends and stock buyback plans.
Much has been made about these cash hoards as it reflects hesitation to reinvest and pursue growth.
However, the cash also represents a corporate distaste for financial leverage, as many debt-laden companies struggled to navigate through the recent financial crisis because of the freeze up in the credit markets.
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