By Thomas Zimmerman, senior vice president, Mortgage Strategy Group, PaineWebber, Inc.
During the past several years, two features have exemplified the asset-backed securities market - rapid growth and securitization of increasing numbers of new asset classes. Aircraft ABS is one of those new asset classes added to ABS. While not as large as home equities or cards, aircraft ABS do have the potential to become a significant category. And they currently trade at wider spreads than do larger, traditional, on-the-run ABS sectors.