For Whom The Bell Tolls

Things are about to get real for corporates with a steep maturity wall. Even for larger companies which termed out their debt in 2020 and 2021, bloated cash balances are dwindling. During the first half, cash spending on capex, R&D, dividends and cash M&A grew double-digits, according to Goldman's David Kostin, a notable statistic given that earnings growth was negative during both Q1 and Q2. The explanation: Management had plenty of cash on hand, and funded spending with those balances