Aircraft Leasing in Full Flight
Grounded for several years after the financial crisis, aircraft lease securitization is reaching new heights thanks to growing passenger demand, particularly in the Middle East and Asia Pacific. Carriers around the world are leasing more planes in order to expand their fleets quickly, and a number of lessors that serve them are bundling contracts into collateral for bonds. Issuance reached $4.6 billion in 2016 and could be even higher this year. Here are some factors driving issuance, and some potential risks for investors.