Bond market guru Bill Gross of Janus Capital likened Valeant’s (NYSE: VRX) debt-driven business model to central banks around the world.
“Valeant’s business model was based on leverage and financial engineering,” Gross tweeted.
“At the extreme it mirrors global monetary policy and their economies,” he added.
Gross: Valeant biz model was based on leverage and fincl. engineering. At the extreme it mirrors global monetary policy and their economies.
— Janus Capital (@JanusCapital) March 22, 2016
Shares of Valeant are down 88% from their 52-week highs.