December 02, 2024

Vinodh Srinivasan, Managing Director, Co-Head of the Structured Credit Group at Mizuho in conversation with Joe O’Mara, Head of Aviation Finance at KPMG

19 minutes

In this episode of the Aviation Global Leaders podcast, Vinodh Srinivasan, Managing Director, Co-Head of the Structured Credit Group at Mizuho, in conversation with Joe O’Mara, Head of Aviation Finance at KPMG, discusses the strong performance of aircraft lessors over the past 12 to 18 months. Srinivasan explains how favourable lease rates and reduced spreads have supported the market, despite the operational challenges posed by ongoing supply chain issues. He predicts a prolonged recovery for new aircraft deliveries but expects lease rates to remain resilient, even amidst interest rate volatility. Srinivasan also highlights Mizuho’s role in supporting lessors through unsecured debt and warehouse facilities, noting that spreads for unsecured debt have reached all-time lows. The ABS market continues to be a vital part of aviation finance, with $6 billion in issuance so far this year, and alternative lenders are playing a growing role in the face of supply chain disruptions. He also touches on the differences in ESG compliance between the US and European markets. Tune in for a deep dive into the state of aviation finance and the factors shaping its future.

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