The vast majority of the last six months of equity market appreciation was due simply to a recovery
of equity market values and not due to cash in - flows.
Most who flew to cash did so after most of the collapse in equity values had already occurred (buy high and sell low), and they were sitting in cash on the sidelines in surprise
as equity market values recovered.
On the contrary, since the 1940's, the ratio
of equity market value to GDP has demonstrated a 90 % correlation with subsequent 10 - year total returns on the S&P 500 (see Investment, Speculation, Valuation, and Tinker Bell), and the present level is associated with projected annual total returns on the S&P 500 of just over 3 % annually.
Larger debt issuance typically comes with a larger pool of assets and
equity market values.
An equity market value of $ 1.1 billion (assuming preferred shares convert at the mid-point price of $ 21 per share) minus cash puts enterprise value at $ 1 billion.
The market - required equity cap rate can be used to convert property income into
an equity market value indication by solving the above formula for Investor Equity: