ISTAT Jetrader - Winter 2022 - 22

AUDIENCE POLL
How will the market for war risk
insurance be affected as a result
of the Russia situation?
* Not at all: 0%
* Premiums will rise in
the short run: 8%
* Premiums will rise
permanently: 75%
* Long-term change/no
availability of insurance
for confiscation, theft
or similar: 17%
RIGHT: MarieLouise
Kelly,
Jolene Verheije
and Ulrike Ziegler
on the panel
" If Money Makes
the World Go
Round, How Can
Capital Providers
Drive ESG? "
LEFT: The
Trading Panel,
from left: Donna
Ager (moderator),
Sarah Conway,
Michael Littleton,
Neil McCrossan,
Finnian O'Neill and
Paraic Quinn.
have gone - both spread and base
rates and where we see lease rate
factors - there's a key disconnect on
the amount of leverage you can get.
Until we see increased lease rates,
there will still be the disconnect. ABS
has a lot of upfront costs. "
A Conversation About
an Evolving Industry:
Lessons from Distress
and Anticipating Change
The next panel picked up where the
previous discussion left off on the
topic of Black Swan events. It was
moderated by Emily Wicker, asset
finance partner at Clifford Chance, and
included panelists Christopher Beers,
chief legal officer at Aircastle; Dan
da Silva, vice president of strategic
regulatory policy at Boeing Capital Corp
and co-chair of Aviation Working Group
(AWG); and Jeffrey Wool, secretary
general at AWG.
Beers' perspective on investors in
distressed assets is that it's ultimately
2 2 * THE OF F I C I AL PUBL I CAT I ON OF ISTAT
a positive for the market. " Distressed
investors provide additional avenues of
liquidity for investors, particularly during
times of crisis. Distressed investors
may also seek to exploit weakness
in transactions that could lead to
improvements in future deal structuring,
like we saw with EETCs after 9/11, " he
said. Also, COVID required an entirely
new playbook on airline restructuring.
He added, " Normally in a distressed
situation, you could always take your
toys and bring them somewhere else, but
there was nowhere to go. Despite those
new challenges facing our customers
and the industry, ultimately the
ownership interest of lessors emerged
largely intact. Russia, the next Black
Swan event, then turned well recognized
principles completely on their head. "
da Silva continued on that topic,
saying, " The industry has learned: 1)
distressed debt investors are more active
in aviation and may create situations we
had not foreseen before; and 2) you have
to adjust your perception of security and
risk and make some modifications to
w
ISTAT Jetrader - Winter 2022

Table of Contents for the Digital Edition of ISTAT Jetrader - Winter 2022
