john-these are just thoughts,as a rule of thumb underwritten...

john-these are just thoughts,as a rule of thumb underwritten drp,s are a warning signal of poor liquidity,by the way i subscribed, austock appear a very conservative group.

anyway,this morning while preparing to shave,i turned on the hot water with the plug in the sink and initially cold water came out, i waited till the running water was warm then removed the plug to allow water to drain and expedite the warming of the
pool of water,i have always done this it seems the most efficient way to get a satisfactory pool of warm water.

oddly this very action stimulated thinking regarding underwritten drps,people often wonder what is behind the macquarie way of thinking ,what has consistently maintained
their position of class leading profit,well i think the pool of water for shaving provided a satisfactory answer.

in the next short while i hope to see the margin on libor
rates reduce as pools of funds begin hitting world financial markets,currently margin spreads on libor are by historical standards extraordinarily high,funding is the key issue i believe for reits and with 300-400 basis point margin spreads against historic middle to old age spreads(35-135), it is almost certainly the major impact on balance sheets combined with an almost total lack of debt liquidity.

so my thinking is ,that even given the dilution the raising is the most efficient use of capital in the context of current market conditions,currently governments worldwide are propping the financial system eventually the financial system will correct,let me ask if you were lending money
who would you consider first.

anyway thats how i reconcile the current circumsatnce.



michael