The chart on the left suggests that from a sector standpoint, small caps are more cyclical than large caps. The chart on the top right shows that small cap companies tend to be of a lower quality, making their earnings more sensitive to the economic cycle. The bottom right illustrates the interest rate coverage ratios of large and small caps. While current ratios for both still sit above long-term averages, the risk remains to the downside, particularly for small caps, which tend to have a higher proportion of floating debt.