One Outcome of Fewer Buybacks? A Record of Leveraged Buyouts (1).

Legislation aimed at restricting share buybacks would likely contribute to a record string of leveraged buyouts if enacted, Canaccord Genuity says. The Canaccord note comes as the debate surrounding share buybacks has emerged again following a New York Times op-ed by Senate Majority Leader Chuck Schumer and Senator Bernie Sanders on Feb. 4 that called out the practice. Reynolds says the Schumer-Sanders measure has little chance of being enacted for at least a few years and, if it came, would result in the unintended consequences of still more "shadow banking". [Extracted from the article]