Fall 2009 Journal

Articles in the Journal of Equipment Lease Financing are intended to offer responsible, timely, in-depth analysis of market segments, finance sourcing, marketing and sales opportunities, liability management, tax laws regulatory issues, and current research in the field. Controversy is not shunned. If you have something important to say and would like to be published in the industry’s most valuable educational Journal, call 202.238.3400.

The Equipment Leasing &
Finance Foundation
1825 K Street NW
Suite 900
Washington, DC 20006
202.238.3400
www.leasefoundation.org

CONTENTS:

Taking Another Look at Syndication Risks in the Changed Economy
A Primer on Leasing Transactions in the International Maritime Sector
Evidence for the Leasing Value Proposition

Taking Another Look at Syndication Risks in the Changed Economy
By Alan J. Mogol

Risk management is central to the syndication of a financing transaction. The customs and practices of the past need to be reanalyzed. Originators must be aware of the potential issues so they can respond appropriately when asked to change their standard documents. Here is a summary of what funders may ask originators to do, and why.

A Primer on Leasing Tansactions in the International Maritime Sector
By Basil M. Karatzas

The Merchant Marine Act of 1920 (Jones Act) has long governed leasing in the maritime industry in the United States. However, as this article describes, international markets - "blue-water" shipping - have certain distinct differences regarding asset differentiation and residual value, sources of capital, legal environment and taxation.

Evidence for the Leasing Value Proposition
By James Schallheim, PhD

Academic research supports the notion that leasing preserves capital and lines of credit, provides tax advantages, and may offer advantages from the transfer of equipment residual risk to the lessor. Less clear, however, is whether there is any support for off-balance sheet financing as a value enhancement to lessee firms.