Bloomberg Surveillance Single Best Idea with Tom Keene: Amanda Lynam & Greg Boutle
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Nov 10, 2025 Amanda Lynam from BlackRock delves into why tech giants are issuing debt despite holding hefty cash reserves, examining the nuances of capital structure. Greg Boutle of BNP Paribas dissects recent equity volatility, attributing it to market positioning while noting a rise in next-year earnings forecasts. Their insights shed light on the intriguing dynamics of corporate finance and market behavior, making for a compelling dialogue on the current economic landscape.
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Tech Firms Still Net Cash
- Big tech firms remain largely net cash despite new debt issuance for strategic uses.
- Amanda Lynam argues gross leverage can rise modestly without fully using theoretical debt capacity.
Cash Reflects Pre-2017 Repatriation
- Much cash on balance sheets traces to pre-2017 offshore earnings and repatriation rules.
- Lynam expects incremental debt capacity to be used gradually and strategically, not all at once.
Traditional Finance Doesn't Fit Tech
- Tom Keene highlights that tech finance differs from traditional corporate finance frameworks.
- He notes large bond deals (30-year paper) are moving quickly in novel market dynamics.