According to a Moody’s analysis of 100 large companies, after an initial round of “credit positive activities,” notably debt reduction, following the corporate tax cuts in the 2017 overhaul, firms have shifted their attention to stock buybacks. The tax cuts increased corporate cash flow by almost $400 billion in 2018. Of that increment, 37% went to debt reduction in the first half; that fell to 14% in the second half. Just over a third, or 36% went to share repurchases in the first half; in the second half, that soared to 60%. Capital spending’s share went from 22% in H1 to 20% in H2. The first half’s gross debt paydown exceeded gross borrowing, making for a net reduction in debt […]