"Debt's the Thing".

• Author: Greifer, Nicholas

Schultz, Leo

The World in 2000, January 2000, p. 108.

This article focuses on the use of bonds versus stocks as a financing vehicle for businesses and governments. It predicts that the trend of replacing equity with bonds that was started by American corporations will extend to Europe. The author notes that, for better or for worse, American businesses are buying back shares of stock and issuing new bonds. In 1998 alone, $267 billion was taken out of the equity market (i.e., net issues of shares), nothwithstanding the much-heralded new Internet stock issues. In part, bonds have become relatively low in cost as investors and institutions have adapted...