From Yahoo Finance: 2025-06-07 15:00:00

Cash levels at blue-chip US companies are shrinking, excluding the most cash-rich corporations. S&P 500 members saw a nearly 1% drop in cash levels for the latest quarter compared to the previous quarter. Overall cash holdings are at $1.14 trillion, declining since 2023. Shrinking cash levels suggest potential business slowdown and profit decline.

Bond prices for US companies are at risky levels, with spreads on high-grade corporate debt at 0.85%, the tightest since March. This may lead to debt being punished in the face of higher inflation and volatility. Companies like Meta Platforms Inc. and Microsoft Corp. have seen their cash holdings rise, but many high-grade companies are facing challenges.

Some money managers are cautious about preparing for the worst in the current economic climate. Investment-grade firms are holding more cash relative to their assets than in the past decade. While some signs of weakness are apparent, particularly in smaller companies, others believe it’s important to remain cautiously optimistic and not price portfolios for the worst-case scenario.



Read more at Yahoo Finance: Corporate cash levels are starting to fall