I’m working on my presentation for OFC/NFOEC:
We may be entering a market phase where liquidity is more important than brains. Lower rated corporate bond yields are increasing at a time where the fed is cutting rates. The price of risk is going way up. Therefore, companies in our sector that are well positioned but unprofitable and under-capitalized could be at the mercy of those which are foolishly run and liquid. This, I am sure, terrifies the management of many companies with leveraged balance sheets.