Smaller aircraft lessors have increasingly tapped the ABS market over the last 18 months, with established lessors utilising other funding methods. The resulting shift in issuance is being reflected in securitised aircraft collateral pools, potentially leading to increased risks.
Fitch notes that the rise in new and/or smaller lessors in the aviation ABS market is paired with an increase in older commercial jet and turbo-prop aircraft concentrations in securitised pools.
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