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Message From the Executive Director
 Happy
New Year! Only 8 weeks into the year, and already 2008 is shaping up to be "one
for the books." Thanks to the increased generosity of donors, we are able to
take on more projects than ever before – from a new international series to a
Perfect Storm II paper addressing lessons learned from the subprime market
meltdown. The research committee – comprised of some of the smartest minds in
the business – continue to focus our energies on future-focused, third-party
research in order to help the industry better understand its opportunities and
deal with challenges. And, if the level of donations we have recently received recently
are any indication, the Foundation is hitting the mark, time and again. We look
forward to putting your donations to hard work in 2008.
Lisa A. Levine, CAE
Executive
Director
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| Industry Future Council Meets, Discusses Industry Opportunities and Challenges
 During last year's Industry Future Council (IFC),
participating members noted that they were waiting for a "correction" in the
marketplace. Later that year, it arrived. What a difference a year makes. This
year's Council, which convened in January, said the industry appears to be having a "crisis of confidence," as
one IFC member put it.
The questions this year centered around how long and
severe the crisis would be, and what could equipment finance companies do to
weather the crisis and be prepared to thrive when it's over.
Read More Here
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| 2008: The Year of Research
The time has come where the Foundation can actively explore more research projects
than ever before thanks to the increased generosity of donors in 2007. A banner fundraising year, the Foundation is exploring numerous research projects to add
to the industry's body of knowledge.
The Foundation expects to fund up to $500,000 in research this year. Such topics as new business models and trends, credit risks, and international
markets are just a few of the research studies that the Foundation will fund in
2008.
Read More Here
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| US Equipment Finance Market Study Gets Attention
The
US
Equipment Finance Market Study, produced for the Foundation by Global Insight,
shows the industry and various stakeholders – from Wall Street to the media –
that the equipment finance industry is expansive, growing, and a major player
in the U.S. economy. The study reveals
the most accurate picture yet of the domestic equipment finance sector: of the
$1.1 trillion invested in plant, equipment and software in 2006, 55 percent or
$600 billion is financed through loans, leases and lines of credit.
Read More Here
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| New Securitization Study Coming Soon
 While
the lease securitization marketplace has slowed to a crawl, a new Foundation
study, Is Equipment Lease Securitization Right for You?, will help equipment finance companies determine if
lease securitization is right for them when the market shifts, as it inevitably
will.
The Foundation, with its eye on the future, commissioned this study in an
effort to have the latest research on hand when financiers are ready to explore
how they can get involved in securitizing their equipment leases, and deal with
the fundamental issues faced by every lease originator that has not yet engaged
in lease securitizations.
Read More Here
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| Webinar To Address The Emerging Alternative Energy Market
The
Foundation, known to take on the most timely industry topics, is poised to help
the equipment finance industry explore one of the hottest markets today –
alternative energy. On March 5, from 1:00 p.m. to 2:30 p.m. Eastern time,
industry members will hear from experts already engaged in this market to help
them determine if renewable energy
financing is a viable market for them, understand the terms, the equipment,
contractual issues, energy pricing and terminology, and learn what makes a
project "finance-able," including an explanation of the credit issues, asset
performance, residual values, and regulatory issues.
Read More Here
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| Credit Default Swaps Study Available Soon
A new Foundation study, How To Improve Your Risk Return Profile Using Credit Default Swaps, produced
for the Foundation by Dr. Deborah Cernauskas of Northern Illinois University,
and Dr. Andrew Kumiega of Illinois Institute of Technology, will be available
in early Spring.
Read More Here
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| Journal Calls for Articles
The Journal of Equipment Lease Financing, published three times a year,
includes in-depth articles on topics that range from accounting, legal, tax,
legislative, and regulatory issues to summarizing current Foundation research. The
Journal editorial board is currently seeking authors and article ideas. Have a
topic that you'd like to see covered in the Journal? Consider becoming its
author! Or, pass on your idea to Lisa Levine at llevine@elfaonline.org
Articles undergo peer
review by the Journal's Editorial Review Board, comprised of industry
members and academics.
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| Foundation Events
- The Foundation
seeks research study ideas on an ongoing basis. The research committee meets
monthly, and ideas should be forwarded to Foundation Executive Director
Lisa Levine at llevine@elfaonline.org
- The Foundation
board will meet several times in 2008, including April 9, September 5 and
November 5
- The Journal of
Equipment Lease Financing's Editorial Review Board is seeking
topics of interest. They meet throughout 2008 to discuss ideas, including
May 8, August 7, and November 13. Please forward ideas to Lisa Levine at llevine@elfaonline.org
- Donations to the
Foundation may be made online! Visit our donor page to
make your donation today.
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| Quick Poll
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| Last Month's Poll
Question: As you plan ahead for 2008's additions to your portfolio, or deals you will originate, do you expect the mix between the "real" leases and loan-like leases to be:
| Responses |
%
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Virtually all real leases
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15%
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Majority (60%+) real leases
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7%
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50/50 (leases and loan-like leases)
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11%
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Majority (60%+) loan-like leases
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35%
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Virtually all loan-like leases
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30%
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No leases at all
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2%
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Total Responses: 47
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| Did You Know?
The securitization
industry began in the early seventies and now represents approximately seven
trillion dollars in securitized assets. The 1985 securitization of Sperry's
computer equipment leases marked the beginnings of the equipment leasing
securitization market. However, the
market did not take off until 1993 and it peaked in 1999 with 35 transactions
totaling $13.6 billion before dropping off precipitously in 2002. By 2006 the market had recovered somewhat
with 12 public and private issues representing $8.4 billion, but this was still
considerably below the 1999 peak. (Source: Is
Equipment Lease Securitization Right for You? Foundation report)
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