Cgt, you have just answered your own question... Its impossible to know... If for example a big deal was imminent, junk bonds would be cheap... However if the deal failed to materialise, then junk bonds are sudden death...
It is easy. To see why banks won't touch biotechs.... its a one in ten chance of getting their money back..
The Boards and CEOs of our listed Biotech are a big part of why this sector is not supported by the investment community... And hence the cost of money is very expensive....
So cap raisings further destroy value because of the poor valuations... Again that blame can be sheeted home to the Boards and Management..
