Deals
Piles of Cash Mean the Biggest Companies Will Get Even Bigger
In a slow growth world, the corporate savings glut means little will be left over for others.
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The world's biggest firms are sitting on mountains of cash and have no idea how to spend it.
"The corporate sector in most advanced economies is running a savings-investment surplus," writes Macquarie Head of Japan Research Peter Eadon-Clarke and Analyst Nara Song. "This is an unintended byproduct of the monetary policy response to credit bubble/busts that transfers income from the household sector to the corporate sector: the lowering of policy interest rates to near zero and flattening the yield curve."