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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (15465)	4/18/1998 10:08:00 PM
From: Zeev Hed	Respond to of 18056

tippet, most of the very large companies reliquified drastically and have ample room for more debt on their balance sheets. Of course, there are always "struggling companies" that are forced to accept floorless conversion for their debt, but these are the basket cases like Cityscape and other overleveraged companies. For the well heeled one, as long as debt is less than 35% or so (except for purely financial operations like banks and GE (g)), it even make sense to borrow to buy back shares since in the long run it increases return on equity. I of course would prefer if they found additional growth to be financed with borrowing, but that is a personal taste. Zeev