One of the symptoms of uncertainty that is pervasive in the economy right now is the large amount of cash that is sitting on companies’ balances sheets. According to FactSet, non-financial companies in the Standard & Poor’s 500-stock index are sitting on a record $2 trillion. The question arises: what will these companies do with all that money?

Along with strong profits, corporations are finding markets very receptive to high yield bond issuance as well. Two weeks ago, the high yield market had its largest week of issuance ever with $15.4 billion in deals. This has further fueled the amounts … …READ MORE