Larry McDonald, Founder of The Bear Traps Report, walks through the intricacies of a company’s capital structure and reveals why investors must understand the debt portion in relation to its equity. Understanding the debt cycle from both a micro and macro level is the key for timing when to short stocks and when to go long them. Larry was a New York Times Best-selling author who wrote the book, “A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers,” and is a veteran in analyzing both debt, convertible bonds, and equity.