Emerging markets exposure was partially credited for the "phenomenal" success of last week's $1.4 billion aircraft lease securitization from G.E. Capital Aviation's Lease Investment Flight Trust (LIFT), according to Neil McPherson, head of ABS research for lead manager Credit Suisse First Boston. Approximately one-half of the 39 aircraft leased out to back the offering are leased out to carriers located in emerging economies, McPherson added.
Of the roughly 50% leased out to these carriers, two-thirds are leased to the flag carrier for these countries, which are frequently supported partially by these country's governments. "If these carriers go under, then tourism dries up, not to mention the embarrassment," McPherson said.