With first quarter ending before we know it, industry leaders say they are staving off negativity by planning for the future. But, we also know that, given current economic conditions, not every company will have the luxury of (read: budget for) conducting their own research. The Foundation is pleased to be filling the role of delivering third-party credible research to help the industry through this challenging time.

Several new studies will debut in coming months including a study on the intermodal and container market, credit swaps, and the Brazilian market place. It cannot be said enough – thank you donors! Without you, we would not be able to fulfill our mission of bringing this future-forward thinking to the industry – much needed in today's tough times.

Lisa A. Levine, CAE

Executive Director

This fall a new Foundation study will debut, "The Next Generation of Intermodal Transport Terminals: An Analysis of Financing Models," which will explore financing models for the next generation of intermodal transportation terminals, particularly for intermodal equipment in port and rail facilities.

A new wave of investments in intermodal transportation is currently underway, as the North American freight transport system buckles under the weight of the last two decades growth in containerized traffic and global trade. Many intermodal terminals such as ports and rail facilities are facing serious limits in their practices.

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A new Foundation study, How to Improve Your Risk Return Profile Using Credit Default Swaps, written by Dr. Deborah Cernauskas of Northern Illinois University, and Dr. Andrew Kumiega of Illinois Institute of Technology, will be available soon. The study focuses on ways equipment finance companies may mitigate credit risk to allow for additional volume capacity and conduct more business. While not every financier is using this vehicle, it is available and generating more interest in the market.

The study will show how a credit default swap can be used to hedge the counterparty risk associated with a portfolio of leases and at the same time increase the net present value of uncertain lease cash flows.

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 For the last few years, the legal and financial risks associated with bundled transactions have been discussed significantly. Yet, financing and billing structures proliferate. Why? The market forces that have caused this growth will be discussed in depth in a new Foundation study available later this year. The study will focus on understanding why these structures are chosen by businesses, public entities and not-for-profit organizations (including the high satisfaction rate), what spurs vendors to offer them, why equipment finance companies offer them, and the benefits they provide to the overall economy.

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Last month, the Foundation hosted a well-received Webinar on the alternative energy market, attracting more than 100 participants from 35 different locations. An up and coming market for financiers, alternative energy has been identified as a bright spot in the equipment finance market place, though most agree it is still an emerging market.

"The web seminar was a very successful program," said panelists Michael A. Leichtling of Troutman Sanders LLP. [And, the participants received] the benefit of an experienced panel of speakers."

• The Foundation seeks research study ideas on an ongoing basis. The research committee talks 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 www.leasefoundation.org/Donate to make your donation today.

Question: The Foundation is considering many projects in 2008. Which study interests you the most?

 Total responses:  52

According to data gathered from official numbers of the Brazilian Equipment Leasing Association (ABEL), the Central Bank of Brazil, and The Alta Group's Latin American Region (LAR) 100 report, the leasing portfolio of leasing companies in Brazil was $15.9 billion (US dollars) as of December, 2006. Data released by ABEL, as of September, 2007, shows a domestic portfolio size of $27.6 billion (US dollars).

(Source: Foundation study, "The Carnivale of Equipment Financing," produced by The Alta Group)