In Canada, cash-rich companies still ‘biding their time’

Companies are taking advantage of record-low interest rates and strong demand for corporate bonds to bulk up their growing piles of cash, holding on to those reserves in part as an insurance policy against economic turmoil.

A new Royal Bank of Canada analysis shows that many companies are building up cash on their balance sheets, “biding their time until the economic environment calms down,” before spending it, RBC economist David Onyett-Jeffries said.

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