Negativity trumps positivity because humans are designed to be risk averse.
It's something that you have to weigh the risks and the benefits, but that's what life is. When you go to a Laker game or any basketball game, you drive through a lot of traffic. You might get killed. But you weigh the risks and the benefits and yeah, I'm probably going to make it, 99.9% chance. There's a point I'm going to go for it. And that's true for everything. But people are so geared up and hyped up for fear. Totally out of proportion. Cause' we've talked about mortality. Out of proportion to what the disease is. And this is not to tell you that it can't get serious. And this is not to put down the people who have had loved ones very ill and dying. But we need to put things into perspective.
A decade ago, we saw a subprime mortgage debt crisis bleed into the rest of the markets. I think this time, the high-yield debt crisis will have the same result.
We’re seeing classic end-of-cycle behavior: throw caution to the wind and plunge capital into the market’s riskiest corners. This artificially-induced buying is propping up companies that would otherwise succumb to the fundamental forces arrayed against them.
Traditional loans generally have protective covenants built into the contract that protect the lender, including financial maintenance tests that measure the debt-service capabilities of the borrower. The issuance of covenant-lite loans means that debt is being issued to borrowers with less restrictions on collateral, payment terms, and level of income. Covenant-lite loans place less restrictions on the borrower in terms of requiring collateral and a certain level of income.
In a plunging market, you don’t sell what you want, you sell what you can.
You only live one life. Don’t spend it in safe, shallow water. Launch out into the deep.
Launch out into the deep. Don't live in the shallows. Live it in the deep waters. Grasp every enobling experience that is available to you. Embrace every dimension of living that challenges you, that educates you, that elevates you. Live for purposes greater than yourself.
It seems that human officials take the less reputationally risky option, even if it leads to more incorrect calls.
You miss 100 percent of the shots you don't take.