3 ms·
In hindsight, it's telling that even the biggest A380 operator didn't actually buy the plane themselves - they leased it through various special-purpose vehicle
by diebeforei485 8y ago
In hindsight, it's telling that even the biggest A380 operator didn't actually buy the plane themselves - they leased it through various special-purpose vehicles which were then sliced into various investment portfolios. Goldman Sachs is one investment bank that set up some of the structures for this - https://www.goldmansachs.com/s/2012annual/assets/downloads/GS_AR12_Client_Stories.pdf https://www.goldmansachs.com/s/2012annual/assets/downloads/G...
- dboreham 8y agoIsn't this kind of financial engineering SOP for all sorts of large assets since decades?
- diebeforei485 8y agoExcept that the issuer of the security is the lessor in this case, not the airline. The airline can just give the plane back to Doric after the 12-year lease period (which ends in 2020-2021 for the first batch of aircraft), and let Doric deal with the investors. This is in contrast to, say, recent deals by United Airlines Inc, where the airline (or its related party, such as its parent holding company United Continental Holdings Inc) was the entity issuing the security.
- toomuchtodo 8y agoIs it possible to short these securities?
- youngtaff 8y agoIt's pretty common for airlines to lease planes rather than buy them themselves