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A rival of Verizon, Qwest Communications International, had to borrow from its banks, sell long-term debt and use shares to reduce outstanding debt when it lost access to the commercial paper market after Enron filed for bankruptcy protection.
He praised the company as having "an impeccable balance sheet" and said it had used its buyback program to reduce outstanding shares by more than 300 million in five years.
The latest effort will pay banks and other lenders to reduce outstanding principal on many mortgages to a number that reflects how far home prices have fallen.
A company would need to increase assets without increasing outstanding shares; reduce outstanding shares without reducing assets; increase retained earnings; or adjust accounting values of assets or stock in order to fix a watered stock position.
The bigger the release, the more money banks like BofA would be willing to shell out to lower payments, reduce outstanding amounts owed, and provide for borrowers to transition out of their homes and into rentals.
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Reducing outstanding shares makes each dollar of earnings more valuable on a per share basis.
It issues 1% to 2% in options annually, handily outperforms its peer group of computer hardware producers and has reduced outstanding shares 13% since year-end 1995.
Asset values have recovered and a higher savings rate has allowed US households to reduce their outstanding debt burden.
"This supports the view that house owners are looking to take advantage of low mortgage interest rates to reduce their outstanding mortgage levels to improve their balance sheets".
"We have a very sound capital position and don't expect the situation to change other than to reduce the outstanding ARS holdings.
Easy Care said it did not have the power to reduce the outstanding balance of my loan, and my lending bank, JPMorgan Chase, said the same.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com