Who leases? Almost everyone, it seems. Eighty percent of U.S. companies lease all or some of their equipment. They lease on an ongoing basis — adding, upgrading, using the flexibility provided by leasing to have the most effective operation possible. Companies that lease tend to be smaller, growth-oriented, focused on productivity, and more technology-oriented. These are companies long on ideas, short on capital, and in need of flexibility as they grow and change. Companies that lease tend to create more jobs and be the most entrepreneurial and competitive. Of the $668 billion spent by business on productive assets in 2003, $208 billion, or 31 percent, was acquired by American businesses through leasing. In 2004, projected leasing volume is estimated at $218 billion. The book is unique because no one has written about managing leasing portfolios to date. There is almost no research on risk evaluation and hedging of long-term non-traded risks. The book is intended to show how a portfolio approach would be implemented to manage these risks.
Book Details:
- Author: Townsend Walker
- ISBN: 9781119201250
- Year Published: 2006
- Pages: 206
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Who leases? Almost everyone, it seems. Eighty percent of U.S. companies lease all or some of their equipment. They lease on an ongoing basis — adding, upgrading, using the flexibility provided by leasing to have the most effective operation possible. Companies that lease tend to be smaller, growth-oriented, focused on productivity, and more technology-oriented. These are companies long on ideas, short on capital, and in need of flexibility as they grow and change. Companies that lease tend to create more jobs and be the most entrepreneurial and competitive. Of the $668 billion spent by business on productive assets in 2003, $208 billion, or 31 percent, was acquired by American businesses through leasing. In 2004, projected leasing volume is estimated at $218 billion. The book is unique because no one has written about managing leasing portfolios to date. There is almost no research on risk evaluation and hedging of long-term non-traded risks. The book is intended to show how a portfolio approach would be implemented to manage these risks.
There is a new recognition by leasing companies of the necessity of measuring and managing risk and portfolios. Basel II and the consequent need to measure and manage risks and capital is forcing leasing companies to take a closer look at their risks. Pending tax legislation is shutting off traditional revenue sources. Events in the airline market in the United States and internationally have created an acute awareness of extreme risk. There are no books and very few articles about portfolio management for equipment lessors.
Focuses on two important topics for equipment lessors: the evaluation, management, and hedging of long-term non-traded risks and portfolio management as applied to leasing. Leasing companies have newly recognized the need to measure and manage risk and portfolios. Basel II and the consequent need to measure and manage risk and risk capital is forcing leasing companies to take a closer look at how to properly manage risks. Pending tax legislation will shut off traditional revenue sources from equipment leasing. Unique topic. No one is writing about managing leasing portfolios, and there is little research on risk evaluation/hedging of long-term non-traded risk. This book fills that void. Untapped market for book. The Equipment Leasing Association has over 775 members internationally with over 10,000 individual members. Most will view the book as a must-have. The top 100 lessors in the U.S. manage over $500 billion in assets and generate about $250 billion in new assets each year.
About the Author
Townsend Walker (San Francisco, CA), is a partner and the creative thinker behind APERIMUS, a firm focused on identifying the sources of risk in a leasing portfolio and devising structures to reduce them. Walker specializes in providing lessors with sophisticated modeling and structuring services, including comprehensive portfolio analysis, capital allocation, risk assessment, derivative structuring, and more. He brings vast capital markets and financial modeling experience to APERIMUS. Most recently, he was a Managing Director at Banc of America Leasing & Capital Group, where he developed a prototype portfolio model for leases and a lease valuation model. He was a Senior Vice President and Manager in Interest Rate Derivatives at Bank of America, where he closed over $150 billion worth of customer transactions. He has extensive experience in foreign exchange trading, corporate lending and asset securitization. Townsend received a PhD in Economics from Stanford, an MA in Economics from NYU and a BS in Foreign Service from Georgetown University. He has written two books, A Guide to Using the Foreign Exchange Market and Managing Risk with Derivatives, and published articles on portfolio management for leasing companies.