Leverage Ratio Eye-openers, updated
I updated this post, as discussion on the leverage ratio still suffer from poor understanding of this solvency measure.
Super interesting question ! Also depends on how buybacks are funded! Acharya/Plantin show that lose monetary policy makes financial activities such as buybacks more attractive than investments even if they have positive npv; we have consistent evidence from ECB’s CSPP program https://t.co/5A4edXpAfI