2min chapter

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Are Bonds Competition For Stocks (EP.297)

Animal Spirits Podcast

CHAPTER

Taking Out Debt When It's Cheap

The average maturity of bonds issued by S&P 500 companies is 11 years. 78% of all outstanding debt in the S&P500 is long-term fixed. Companies gorged in 2020-2021 on lower interest rates. The old Buffett line was always, don't try to take out debt when you need it. Take it out when it's cheap.

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