Inside the High Yield Debt Market with Rajay Bagaria
Excess Returns
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The D Leverage and the Opportunity to Invest in Growth
One of the models that we run is based on some academic work that looks at highly levered small cap value stocks. And then it tries to predict whether or not the company can pay down that leverage and take that bankruptcy risk off. I really think it's more about, you know, the D leverage plus the opportunities to invest in growth. So I'm not sure our experience would conclude that it was the PE returns were entirely driven by the D leverage on an absolute basis.
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