PT - JOURNAL ARTICLE AU - Peter Manofsky AU - John Bella, Jr TI - Collateral Pools Shift as Aircraft ABS Accelerates AID - 10.3905/jsf.2016.21.4.020 DP - 2016 Jan 31 TA - The Journal of Structured Finance PG - 20--26 VI - 21 IP - 4 4099 - https://pm-research.com/content/21/4/20.short 4100 - https://pm-research.com/content/21/4/20.full AB - Aircraft asset-backed security (ABS) issuance has picked up in the past two years after coming to a halt following the 2007–2008 recession, and strong issuance is expected to continue into 2016. Stable performance and ratings are expected for outstanding transactions, supported by solid passenger-demand expectations. In this article, however, the author notes some softness in values and lease rates, particularly with regard to certain small-variant wide-body aircraft.The recent increase in ABS issuance has also introduced the market to collateral pools that represent a shift from what has typically been seen in the space. Notably, a few transactions have been completed that feature mid- to end-of-life aircraft and increased concentrations in regional jets and turboprop aircraft. Meanwhile, the author’s outlook for aircraft lessors is stable to positive because they are supported by strong industry fundamentals.TOPICS: Asset-backed securities (ABS), legal/regulatory/public policy