Bloomberg Writes on Repatriation
Bloomberg features the article, "$1.5 Trillion in Corporate Cash Is Coming to America," which says, "The biggest U.S. asset managers are going head-to-head to win a piece of a $1.5 trillion corporate cash comeback. That's the sum companies are expected to bring onshore under the U.S. tax overhaul passed last year, according to Invesco estimates. About $400 billion has already been repatriated, according to the firm." The piece explains, "Overseas, at least one major asset manager is losing out as a result of the changes. Cisco Systems Inc. yanked 5 billion euros ($5.7 billion) from Deutsche Bank AG's asset management arm, DWS Group, in recent quarters as it repatriated profits, Bloomberg News reported on Thursday." Bloomberg's article tells us, "Halfway into the year companies are still only beginning to respond to the changes. But BlackRock Inc., JPMorgan Chase & Co. and Fidelity Investments are among asset managers racing to create new strategies for clients who want to bring overseas funds back." They quote Michael Morin of Fidelity, "Some of our clients have already completed those transactions, but the majority of our clients are still in the process." Goldman Sachs' Jason Granet comments, "Corporations that had been issuing debt in the low interest-rate environment are increasingly turning around their strategies." Finally, JPMorgan Asset Management's Ted Ufferfilge tells Bloomberg, "People are trying to think through what they want their capital structure to look like, with short-term bond funds in particular garnering attention recently."
