The Credit Cycle - Deepstash

The Credit Cycle

Superior investing doesn’t come from buying high-quality assets, but from buying when the deal is good, the price is low, the potential return is substantial, and the risk is limited. These conditions are much more the case when the credit markets are in the less euphoric, more stringent part of their cycle.

  • Capital: all the money used to finance a business.
  • Credit: the portion of a company’s capital that is made up of debt rather than equity.

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