Who did the buying as U.S. stocks staged the biggest turnaround in three years? The companies that issued them.
Bloomberg News reports that the Goldman Sachs unit that executes share buybacks for clients had its busiest day since 2011 on Wednesday, according to a note from the firm’s corporate agency desk. Based on the value of equities repurchased, volume handled by the bank set a record. The note was confirmed by spokeswoman Tiffany Galvin.
'There are definitely some companies that take advantage when their stock is down', Thomas Garcia, head of equity trading at Thornburg Investment Management Inc. in Santa Fe, New Mexico, said by phone. 'We look at it as a positive, that companies think their stocks are undervalued, that it’s investing in their best option and that’s a good thing'.
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