Captives shun equities in favor of intercompany borrowing

04/26/2013 | CFO.com

Companies are increasingly engaging in intercompany borrowing to fund captive operations, according to a report from Marsh. Before the economic downturn, captives were largely invested in equities. The report says 52% of captives' investment consists of intercompany loans; 22% is in equities, and 20% is in cash.

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