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Corporations are holding record amounts of cash.And none of them wants to keep it in the U.S.
Cash holdings for U.S. non-financial firms rose 3% to $1.24 trillion, according to Moody’s.
That tops last year’s all-time high of $1.2 trillion.
Moody’s also estimates nearly $700 billion, or 57% of the corporate cash total, is held overseas. The ratings agency attributes this to emerging-market strength, dividends and high levies on repatriated cash.
“Without permanent reform that lowers the tax on overseas profits, Moody’s expects the absolute and proportionate amount of cash held overseas will continue to rise,” the firm says in its release.
Even among corporate behemoths, there’s a 1%: Apple, Cisco, Google, Microsoft and Pfizer accounted for 22% of all cash balances. Apple alone represented 8% of all holdings.