Investing in Aviation Finance: Europe

Evaluating aviation finance, going beyond yield

• How to evaluate the strength of aviation as an asset class, focusing on yield and risk adjusted returns.
• Components to consider when evaluating and monitoring an investment.
• Comparison of aviation investments to other asset types and instruments

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Evaluating aviation finance, going beyond yield

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• How to evaluate the strength of aviation as an asset class, focusing on yield and risk adjusted returns.
• Components to consider when evaluating and monitoring an investment.
• Comparison of aviation investments to other asset types and instruments

Karl Essig

Partner

AgFe

• Next session: A historical perspective of aviation throughout the cycles: a robust asset class

A historical perspective of aviation throughout the cycles: a robust asset class

• Analysis of the performance of the asset class through different crisis and cycles
• Bench marking against other asset classes

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A historical perspective of aviation throughout the cycles: a robust asset class

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• Analysis of the performance of the asset class through different crisis and cycles
• Bench marking against other asset classes

• Next session: Navigating the pitfalls of investing in the asset class: risk and deal analysis
• Previous session: Evaluating aviation finance, going beyond yield

Coffee & Networking

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Coffee & Networking

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• Next session: Navigating the pitfalls of investing in the asset class: risk and deal analysis
• Previous session: Evaluating aviation finance, going beyond yield

Navigating the pitfalls of investing in the asset class: risk and deal analysis

• Portfolio type, age, residual exposure, leverage, diversification

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Navigating the pitfalls of investing in the asset class: risk and deal analysis

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• Portfolio type, age, residual exposure, leverage, diversification

• Next session: Investing in structured products: the EETC and ABS market
• Previous session: Evaluating aviation finance, going beyond yield

Investing in structured products: the EETC and ABS market

• Structural features and enhancements to achieve a rating uplift, role of the service provider, setting up an SPV, documentation and the security package, managing a default, returns.

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Investing in structured products: the EETC and ABS market

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• Structural features and enhancements to achieve a rating uplift, role of the service provider, setting up an SPV, documentation and the security package, managing a default, returns.

• Next session: Evaluating airlines, the airline industry and the leasing market: how should investors think about these different segments?
• Previous session: Evaluating aviation finance, going beyond yield

Lunch

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Lunch

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• Next session: Evaluating airlines, the airline industry and the leasing market: how should investors think about these different segments?
• Previous session: Evaluating aviation finance, going beyond yield

Evaluating airlines, the airline industry and the leasing market: how should investors think about these different segments?

1) Evaluating an airline;

•  Airline profitability, business model, performance metrics

2) Evaluating a leasing company.

• Impairments, ROE, book value, aircraft type and vintages, business model.

3) Evaluating the asset

• Aircraft types, investing in a depreciating asset, calculating residual values and current market value, how aircraft are trading, investing in different vintages.

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Evaluating airlines, the airline industry and the leasing market: how should investors think about these different segments?

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1) Evaluating an airline;

•  Airline profitability, business model, performance metrics

2) Evaluating a leasing company.

• Impairments, ROE, book value, aircraft type and vintages, business model.

3) Evaluating the asset

• Aircraft types, investing in a depreciating asset, calculating residual values and current market value, how aircraft are trading, investing in different vintages.

• Previous session: Evaluating aviation finance, going beyond yield

Identifying the right asset manager

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Identifying the right asset manager

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• Previous session: Evaluating aviation finance, going beyond yield

Coffee Break

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Coffee Break

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• Previous session: Evaluating aviation finance, going beyond yield

A look at cashflow modelling and different scenarios

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A look at cashflow modelling and different scenarios

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• Previous session: Evaluating aviation finance, going beyond yield

Open forum for Q&A

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Open forum for Q&A

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• Previous session: Evaluating aviation finance, going beyond yield

Registration and coffee

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Registration and coffee

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• Next session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Ishka welcome video and opening remarks

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Ishka welcome video and opening remarks

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• Next session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

• Where have the cycles moved in the past year to now and are we investing at the peak of the cycle?
• What is the impact of interest rate rises on various players in the industry?
• Could further interest rate rises in Europe cause bond investors to move away from alternative assets and into financial products?

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Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

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• Where have the cycles moved in the past year to now and are we investing at the peak of the cycle?
• What is the impact of interest rate rises on various players in the industry?
• Could further interest rate rises in Europe cause bond investors to move away from alternative assets and into financial products?

Nils Hallerstrom

President

PK AirFinance

Ed Hansom

Consultant

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Dick Forsberg

Head of Strategy

Avolon

William Glaister

Clifford Chance

• Next session: Deal or no deal investor panel: Deconstructing the investment strategies of investors with varying experience in aviation finance

Deal or no deal investor panel: Deconstructing the investment strategies of investors with varying experience in aviation finance

• Which product offers the best relative value in the current climate?
• How have recent investors gone through the process? What holds others back?
• What are investors’ true feelings towards investing in a dollar denominated asset, and the level of liquidity in the market?

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Deal or no deal investor panel: Deconstructing the investment strategies of investors with varying experience in aviation finance

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• Which product offers the best relative value in the current climate?
• How have recent investors gone through the process? What holds others back?
• What are investors’ true feelings towards investing in a dollar denominated asset, and the level of liquidity in the market?

Matthew O'Sullivan

Head of Commercial Securitisation

M&G Investments

Matthew Taylor

Legal and General

David Andrews

Managing Partner

Hudson Structured Capital Management

Ranbir Hunjan

Partner, Banking & Finance

Clifford Chance

• Next session: Design the future of the market. What the future of the European capital markets could look like.
• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Networking break

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Networking break

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• Next session: Design the future of the market. What the future of the European capital markets could look like.
• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Design the future of the market. What the future of the European capital markets could look like.

The challenge: Split into teams, discuss & write down the features of what the future of the market could look like for Europe. Each team’s ideas will be expertly illustrated throughout the afternoon and displayed at the end of the day.

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Design the future of the market. What the future of the European capital markets could look like.

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The challenge: Split into teams, discuss & write down the features of what the future of the market could look like for Europe. Each team’s ideas will be expertly illustrated throughout the afternoon and displayed at the end of the day.

• Next session: Scenario planning: Assessing the impact of recent bankruptcies
• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Scenario planning: Assessing the impact of recent bankruptcies

How exposed are ABS investors to the recent Air Berlin, Alitalia, Monarch bankruptcies? Has it affected the appetite of European investors?

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Scenario planning: Assessing the impact of recent bankruptcies

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How exposed are ABS investors to the recent Air Berlin, Alitalia, Monarch bankruptcies? Has it affected the appetite of European investors?

John Mowry

Managing Director

Alton Aviation Consultancy

• Next session: ABS: still an esoteric proposition?
• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Lunch

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Lunch

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• Next session: ABS: still an esoteric proposition?
• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Networking and Coffee

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Networking and Coffee

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• Next session: The Ishka “Duel”: Transparency – how much we have vs how much we need in the market to stimulate European investor appetite
• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

The Ishka “Duel”: Transparency – how much we have vs how much we need in the market to stimulate European investor appetite

• How can the servicer and equity investor collaborate on deals, and what role should transparency play in this?
• What incentives do manufacturers & lessors have to be more transparent?
• Is it investors right to know the true metal value of aircraft they invest in?

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The Ishka “Duel”: Transparency – how much we have vs how much we need in the market to stimulate European investor appetite

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• How can the servicer and equity investor collaborate on deals, and what role should transparency play in this?
• What incentives do manufacturers & lessors have to be more transparent?
• Is it investors right to know the true metal value of aircraft they invest in?

Edward O'Byrne

Chief Investment Officer

Aercap

Ryan McKenna

Vice President

Air Lease Corporation

Michel Dembinski

Managing Director, Head of Aviation - Structured Finance Office

Bank of Tokyo-Mitsubishi UFJ (BTMU)

• Next session: Keynote issuers panel “Town Hall”: Will airlines and lessors turn to European capital markets in 2018 and beyond?
• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Keynote issuers panel “Town Hall”: Will airlines and lessors turn to European capital markets in 2018 and beyond?

Potential topics could include:

• Airlines & lessors fleet plans for next year and preferences on fleet funding.
• With increasing euro and sterling revenue streams, will lessors and airlines look to fund themselves in these currencies?
• What key initiatives would stimulate issuers to tap the market?

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Keynote issuers panel “Town Hall”: Will airlines and lessors turn to European capital markets in 2018 and beyond?

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Potential topics could include:

• Airlines & lessors fleet plans for next year and preferences on fleet funding.
• With increasing euro and sterling revenue streams, will lessors and airlines look to fund themselves in these currencies?
• What key initiatives would stimulate issuers to tap the market?

Robert Korn

President

Apollo Aviation Group

Ryan McKenna

Vice President

Air Lease Corporation

James Hall

Director, Corporate Finance and Treasury

American Airlines

Stephan Sayre

Managing Director

DVB Bank

• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?

Closing remarks and drinks reception

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Closing remarks and drinks reception

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• Previous session: Forecasting macroeconomic indicators: What will an interest rate hike mean for the European capital markets?