It is without question that, over the last decade, securitization has played a pivotal role in the availability of credit to companies in the equipment leasing and finance sector. As investors shunned the structured product markets in 2008, liquidity disappeared and new ABS issuance dried up.
The Equipment ABS Market
This article: 1) as a matter of background, discusses the basic economics of a TALF loan backed by equipment ABS and provides a general overview of the collateral eligibility requirements of TALF relating to equipment ABS, and 2) discusses the key hurdle (i.e., achieving a AAA rating) prospective issuers have encountered, and will likely continue to encounter in the near term under the existing paradigm, in their attempts to structure and execute equipment ABS in the current market.
By
J. Benjamin Earthman And Evan WilkoffThis premium content is locked for LawJournalNewsletters subscribers only
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