Private equity now owns far more companies than the public market. The private markets allow a more effective way to manage than public companies.
That is why we are seeing financial engineering with mergers and buy-outs and buy backs. It is an important part of the economy and the financial markets. The duration of the assets is lengthened and increases the price sensitivity.
The issue is that more and more equities are owned privately. There is a vibrant market that is private.
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