Also Read | Covid curve slumping across IndiaThe payouts, known as dividend recapitalizations, are striking considering the pandemic’s economic disruption.
By comparison, during the last recession, in 2008-09, such activity nearly dried up, the data shows.One reason dividends fell so much in the last downturn is lenders grew cautious and wouldn’t lend to companies already considered to be risky.
This time, near-zero interest rates and robust government buying of corporate bonds have pushed investors to take more risk to get a decent return.Private-equity firms ranging from giants such as Blackstone Group Inc.