Aircraft-Lease Bonds Draw High Demand as Investors Seek Yield
- Castlelake’s ABS adds safeguards to mitigate Covid uncertainty
- Bonds were nearly ten times oversubcribed, investor says
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Investors clamored for bonds backed by U.S. commercial aircraft leases this week in the first such offering in almost a year.
Castlelake LP, an investment firm whose businesses include buying and leasing out commercial planes, sold $595 million of bonds backed by aircraft on Wednesday, reaching money managers that are hopeful the pandemic-battered industry is nearing a recovery, and are hungrier for yield. More aircraft lease deals could be coming in part because airlines have raised so much money, giving them resources to make lease payments.