Non-traditional ABS asset classes — including transportation asset leasing and timeshare — are on the road to recovery despite the economy’s depressed state, according to Standard & Poor's analysts. In S&P's newest edition of CreditWeek, the rating agency’s analysts said that the transportation leasing business, mainly the aircraft, railcar and container sectors, experienced tough times in 2009. The struggling parent companies of the major leasing firms including International Lease Finance Corp. and RBS Aviation Capital tried to find buyers for their leasing company affiliates despite the dearth of interested purchasers, S&P reported.
However, despite these drawbacks, the rating agency believes that there are some positive factors going for the sector such as investors’ risk appetite coming back. This positive sentiment carries over to the timeshare sector where, despite the economic woes and without government support through the Term ABS Loan Facility or TALF, there was a flurry of new issuance in 2009. S&P analysts attributed the deal deluge to investor demand created by increased enhancement on timeshare ABS transactions. These topics, along with other non-traditional asset classes, are going to be highlighted in today’s seminar sponsored by S&P’s structured credit team. The seminar will also feature outlooks from S&P’s Chief Economist David Wyss, Global Head of Financial Institutions Ratings Jayan Dhru and Global Head of Corporate Ratings John Bilardello.