
Jeremy Raper - Credit Focused Equity
The Business Brew
00:00
How to Short a Startup
I will never short a founder led company that can spin a good story ever. When I think there's a trigger for the credit gravity, let's say the the for the unsustainable debt burden to fall on top of the equity, right? So I mean, obviously, it has to be a bad business, right? And it has to have a busted balance sheet. But more than both of those two things, you have to be tried to identify what's going to cause the House of Cards to fall over. Is it a covenant breach? Is it a debt maturity wall? You know, typical credit, credit type stuff. It was conceived around this idea that they had a capital problem.
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