Tech Finds New Thing: Leverage

Stein, Gabrielle
December 2006
Investment Dealers' Digest;12/11/2006, Vol. 72 Issue 47, p10
Trade Publication
The article discusses the increase in debt issuance by high technology sectors in the U.S. Fitch Ratings Inc. shows that total debt in the sector is expected to hit a record in 2007. Dave Novosel of GimmeCredit says that many of these companies have been in a growth phase for the past 10 to 15 years and are mature enough to handle a higher debt load. He adds that in order to improve returns on equity, it makes sense to add debt to the balance sheet since they can use cash flows to pay it off.


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