Microsoft Joins Companies in Deep End of Bond Pool

The video discusses the trend of large corporations, like Microsoft, taking on significant debt to finance acquisitions, such as LinkedIn. It highlights the role of CFOs in leveraging low yields and the impact of yield compression on corporate finance. The discussion also covers the choice between debt and equity, the influence of tax codes on borrowing, and the use of foreign currencies in transactions. The video concludes with a look at potential M&A activities fueled by cheap borrowing costs.

What is the significance of Microsoft acquiring LinkedIn in the context of corporate debt?

How are negative yields affecting corporate borrowing strategies globally?

Discuss the implications of CFOs needing to leverage debt to maintain their positions.

Analyze the potential risks associated with companies over-leveraging due to low debt service costs.

What role does the tax code play in corporate decisions to borrow money?