Volatility measures how much prices have moved recently. That is a different thing from how much you might lose, and the gap opens widest when it matters most.
Credit Spreads Are the Early Warning System Equity Investors Ignore
Bondholders and shareholders are asking different questions, and the bondholder’s question is the one that matters first.
Operating Leverage: Why Some Companies Fall Apart Faster Than Others
Two companies with identical revenue, profit and growth can differ by several times in how dangerous they are to own. The difference is what share of costs is fixed.