I was struck by this comment from Robert Tchenguiz a property investor
and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
in the middle of attempting to refinance -

"Tchenguiz himself would not comment, but he did say that his
investment strategy of buying up public companies was one he would
stick with. "There's still room in the public markets. It's the only
medium where you can buy assets at a big discount," the billionaire
told The Sunday Telegraph."

<URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>

It seems ridiculous to me in the age of such technology, knowledge and
information that such large disparities between fair value & the value
stock markets give a company can arise.

Daytona

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.

"Daytona"  wrote in message 
news:ukjtb3t4jhib2ojuhaepljevpnc4f0k8fu@4ax.com...
>I was struck by this comment from Robert Tchenguiz a property investor
> and owner of Somerfield, Mitchells & Butlers and Welcome Break caught
> in the middle of attempting to refinance -
>
> "Tchenguiz himself would not comment, but he did say that his
> investment strategy of buying up public companies was one he would
> stick with. "There's still room in the public markets. It's the only
> medium where you can buy assets at a big discount," the billionaire
> told The Sunday Telegraph."
>
> <URL:http://www.telegraph.co.uk/money/main.jhtml?xml=/money//2007/08/12/cccredit112.xml>
>
> It seems ridiculous to me in the age of such technology, knowledge and
> information that such large disparities between fair value & the value
> stock markets give a company can arise.

It says more about the bond markets than equities, private equity is simply 
an arbitrate opportunity between the two given the fact credit is (well was) 
mispriced, the real cost of capital is still very low. The benchmark cost of 
credit is artificially fixed by the central banks rather than by simple 
supply and demand, so it's no surprise such a disparity exists.

The central banks will argue that credit spreads should reflect risk 
adjusted returns and narrowing or widening spreads is a matter for the 
markets. However, whenever you fix the price of a commodity below its 
natural price you will create excess demand that leads to rationing, that's 
exactly what we're seeing right now, the fixed income market has ceased up.