Defense Industry Access to Capital Markets: Wall Street and the Pentagon, An Annotated Brief

Abstract

Private companies rely on cash raised from capital markets to finance their operations, including expenditures on long-term assets (such as facilities and equipment), independent research and development (IRAD), and retirement of old debt. Capital markets play a role in shaping the depth and breadth of the U.S. defense industry and the capabilities it has to offer, as well as in the cost of these capabilities to the Department of Defense. This paper presents interim findings of research on defense companies access to capital markets. The research is ongoing, and a final version, including policy recommendations, will be presented at the May 2012 Naval Postgraduate School Annual Acquisition Symposium.