A bubble in the Biotech index (NYSE: [[IBB]]) will inevitably burst. The strategy involves Valeant borrowing money at its own blended cost of capital to invest in drug assets that will likely provide higher returns due to future expected price inflation. It is a "heads I win, tail I don't lose" investment and allows PM Michael Pearson to comfortably take on significant leverage to drive home one of the greatest trade since subprime, that is until Martin Shkreli pooped the party.