News / Events
March 2014

Capital markets financings on the rise: AFC

Aircraft financings in the capital markets are set to increase on the back of solid investor demand for non-traditional products and increased regulation in the commercial banking sector. “Capital markets have been relatively constant at 25% [of the total aircraft financing bill], but we think that percentage is going to grow dramatically,” said Douglas Brennan, chief executive officer of Aviation Finance Company at the Aeroleasing aircraft and engine summit in Jakarta today. “I think we are going to see a dramatic shift away from the stability of the capital markets participation as Basel III rules kick in, so this [participation] will grow to 30 to 50% or more.” Supporting this growth, says Brennan, are a “fantastic number” of alternatives to the enhanced equipment trust certificates (EETC) financings in the capital markets. “There is a lot appetite for a lot of...

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