Transportation equipment investment is a long-term play. While the Conference Board’s index of leading economic indicators suggests the U.S. economy will enjoy solid growth through the end of this year, there are areas where headwinds and complexity exist. China and America’s Trade The Trump Administration imposed 25% tariffs on $50 billion of Chinese goods “that […]
A Growing American Economy The U.S. economy is heading into the second half of 2018 with strong momentum. Nonfarm payrolls are beating expectations. Manufacturing and construction indexes are accelerating. Economists are expecting growth through the end of the year between 3.6% and 4.8%. Economic activity, passenger, and both domestic and global air and rail freight […]
Global Economic Forecast Investment forecasts are driven by models built on expected levels of economic activity. Shifting international dynamics and the impact of the U.S. Administration’s economic policies are driving changes. While oil prices remained below $50 for most of 2017, recent volatility reminds us there is uncertainty as to their future direction. OPEC has […]
Investment in air and rail assets involves complex disciplines. These include financing, legal, bankruptcy, jurisdictional analysis, documentation skills, insurance knowledge, residual collateral value expertise, tax structuring, accounting (under the new lease accounting rules), and an understanding of the after-tax cash economics of loan vs. tax lease pricing. Secured lending is a credit risk and collateral […]
Changing Tax Consequences Whether you are an investor or a service provider, the Tax Cuts and Jobs Act (the “TCJA”) has changed the tax consequences for entities that compete in the transportation equipment lease finance marketplace. Investment stands on the marginal revenues and cost (including tax) it generates. The great news: TCJA reduces the after-tax […]
Demand in Aviation Global passenger traffic is growing faster than expected. The International Air Transport Association (IATA) expects 6.0% revenue passenger kilometer (“RPK”) growth for the year, above the 5.5% long-term trend. This level of RPK growth is indicative of the robust demand in the aviation sector. Rising fares coupled with continuing (but still relatively) […]
Rail Traffic Landscape AAR statistics demonstrate rail freight traffic volumes correlate closely with changes in overall GDP (except for grain, coal, and crude oil product movements, which are not tied to GDP). With tax policy improving the outlook for GDP growth (2018 is now expected to be 2.9%[1]), the Conference Board index of leading indicators […]
When comparing investment returns it is misleading to simply look at headline figures. At first glance, it might seem an investment that gained 12% last year is better than one that gained 9%. In reality, it depends on how much risk was involved in generating those returns. The more risk (or volatility), the less probable […]
According to IMF and the OECD, 80% of the world’s major economies are at full employment. Encouraged by immediate expensing and repatriation of cash from overseas, the U.S.’ traditionally robust consumer demand is now expected to be supplemented by productivity improving capital investment. Transportation investment markets follow traffic demand and with economic growth on the […]
The New Tax Law The Tax Cuts and Jobs Act (the ‘Act’) will be an investment game changer. It is expected to pass Congress and be signed by the President. It will lower the corporate tax rate to 21% and provide for 100% immediate expensing of capital investment (but only for five years). Currently, the […]
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Rail Uptick Defies Slowing GDP, While Aero OutperformsJuly 1, 2025 - 9:30 pmRail Uptick Defies Slowing GDP, While Aero Outperforms
Tariffs and Trade Shift MarketsJune 6, 2025 - 9:29 pmTariffs and trade shifts are affecting markets. Learn how aero and rail have reacted to these tumultuous times. Call RESIDCO.
Market Disruptions Bolster Aero & Rail InvestmentMay 5, 2025 - 3:40 pmA weaker dollar and Treasury market volatility has made hard asset Aero and Rail investment more attractive. Call RESIDCO.