MSCI Inc. (NYSE:MSCI) will pursue a small bolt-on acquisitions. Henry Fernandez Chairman and CEO said during the Third Quarter 2023 Earnings Conference Call, "So we end up generating a lot of excess cash, and therefore, most of that excess cash flows back to buy back shares. In periods of high uncertainty and high unpredictability, people retrench, people hide, Board of Directors are risk averse and the like.

And those are periods in which we believe we can make very nice financially disciplined acquisitions, and that's what we've seen in the last few months, the Burgiss acquisition, the Trove acquisition and the like. And so we'll continue to pursue small -- relatively small bolt-on acquisitions that will use up a lot of our cash. So therefore -- and the last piece of this thing is financing.

Right now, the financing environment is very expensive. We are delevering. We're at 3.1x, 3.2x leverage right now, in leverage, maybe less.

And therefore, we don't have a keen interest in increasing our debt -- our leverage at this point. So therefore, when you combine all of that, it means that we're going to have very limited cash, excess capital for buybacks in the next few quarters. nd we will continue to pursue a small bolt-on acquisitions because the market is attractive for that.

And we -- unless we see something bigger, we're likely not going to lever up at this point given these financing rates. So that's a little bit of our financial strategy overall in capital allocation at this time".