Meanwhile, Albert Edwards of SocGen suggested that there has been an excessive «move away from
equities» in
recent years — instead of noting, for example, that the volume of U.S. government debt foisted upon the public (even excluding what has been purchased by the Fed) has doubled since 2007, not to mention other sources of global debt
issuance, while the market capitalization of stocks has merely recovered to its previously overvalued highs.
In the most
recent 10 - Q, the Company justified the now - proposed action to authorize the
issuance of additional
equity by highlighting concerns regarding the March 2011 maturity of the LOC.
Admittedly, there's been some mitigation since, via subsequent property sales (see Note 12) & a
recent equity & bond
issuance — but I certainly didn't expect SRE's leverage to march steadily higher!?