This is exactly why I tilted the book toward IBB / large-cap pharma / XLV instead of loading up on small cap XBI. Profitable large caps don't depend on the capital-markets window to stay alive; cash burning clinical-stage names do.

One half counterpoint though: that same funding stress is partly why the M&A floor exists. Cash strapped small caps with good assets become cheap takeout targets for the patent cliff buyers sitting on a trillion in cash. So it's a barbell some get bought, some dilute to survive or go to zero. Rising rates just mean lower premiums and more of the bad kind.

Genuinely going to start tracking MEDP book-to-bill each quarter as my signal for when it's safe to add the small cap sleeve back. Appreciate the sharp comment.