Photo: Associated Press
The fact is that if you’re a big blue chip, it behooves you to take on as much debt as you can — super-cheap capital at these rates — and buy up all your equity, which is expensive capital.
And if a company won’t do it itself, no doubt there are some PE shops looking at making the same calculus (although a PE shop isn’t likely to be able to get capital quite as cheaply as a company can itself).
But bottom line, with rates this low, there’s just not much reason to finance via equity. It’s all about debt.