If a proposed lease between Boeing Co. and the U.S. Air Force for 100 Boeing 767 refueling tanker jets goes through, the Street could find itself distributing a windfall $17 billion in aircraft lease ABS, reports Investment Dealers Digest, a sister publication of ASR.
Such a deal could bode well for the ailing aircraft ABS market. Theoretically, USAF lease payments would back the securitization. Sources described Boeing selling the aircraft to an SPE, which would finance the purchase by issuing ABS. The trust would then lease the aircraft to the Air Force, which is apparently a pretty decent credit.