Microsoft Just Showed Why The Market Can't Tank With Rates This Low

steve ballmer microsoft

Photo: Associated Press

It’s not confirmed, but Bloomberg is reporting that Microsoft (MSFT) plans to issue debt in order to buy back shares.The stock surged late in the day on the news.

Of course, this makes total sense from Microsoft’s perspective. Debt capital is so ridiculously cheap right now for large, healthy companies, it  really doesn’t make sense NOT to issue debt and return it to shareholders.

This kind of calculus is at the essence of the bull case on stocks, and we’re seeing it in action (not just with Microsoft, but also with HP — which is not only buying back stock, but also boosting the shares of all the companies its trying to snap up).

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