Ann: Macquarie Group 1H24 Presentation, page-38

I don't think that's a fair response to pete11. It's got nothing to do with debt being good or bad, but about where the highest return is.

With the exception of 1H21 when markets tanked at the start of covid, MQG just reported their worst half of earnings (on a per share basis) in half a decade, and back then the SP was about $100-120. While we don't know what MQG's marginal cost of capital is, the fact is that interest rates are at a 10yr high so their cost of capital is no doubt also elevated.

In choosing to forego repaying debt, MQG appear to have effectively borrowed $2B to buy a business (themselves) currently earnings worse returns than cash. It's entirely fair to question whether that's a sound investment or just the board and management protecting themselves from market pressure by supporting the SP.

*Hopefully* they have some insight to the mid/near-term future and see 1H24 as a one-off low point and expect 2H24 earnings to significantly improve.