Entries by residco
Aero & Rail Investment – A Midyear Macro Perspective
Aero and Rail investment operate at the intersection of financial services and the real economy. The past decade of low interest rates has driven asset values up. Add the five trillion in aggressive stimulus spending passed by Congress and U.S. inflation is at a four-decade high. During the Covid lockdowns transportation operations were streamlined by […]
Managing Aero and Rail Investment Through a Post-COVID Recovery
As demand returns, post-COVID transportation markets are struggling to maintain service levels. Precision Scheduled Railroading (“PSR”) with its asset and workforce reductions worked to reduce Class One operating ratios. Over the five years before the pandemic the Class Ones had already reduced headcount 33% through attrition and layoffs. During the pandemic workforce reduction continued as […]
A Storm of Fundamental Challenges Create Aero and Rail Opportunities
A strong labor market is driving wage inflation and a falling unemployment rate (now 3.6%, just above the 3.5% it was before the pandemic). Even though the U.S. GDP was down 1.4% in the first quarter, rail carloads originated in March were up 1.2% year over year. The unexpected GDP drop was driven by a […]
Russian Ukrainian Invasion Upends Aero and Rail Outlooks
Investment and financing decisions involve an evaluation of risk, amount and timing of cash flows, and expected equipment values over an investment horizon. The outlook for Aero and Rail cash flows for the balance of 2022 have changed as the Global community reacts to Russia’s invasion of Ukraine. Even though Russia is a signatory to […]
War & Inflation Converge, Pitfalls & Opportunities Emerge
Coming out of the pandemic and in the early stages of a recovery, the world is responding to Putin’s choice to invade Ukraine. The impact on investor confidence is reflected in the market’s volatility. Crude oil prices are up. Rail and air freight capacity from Asia to Europe has been eliminated. The European Union Aviation […]
Unlocking Aero & Rail Equipment Values Amidst Surging Inflation
Global growth continues but is expected to slow to 4.1% in 2022 (down from 5.5% in 2021[1]). In the U.S., 2022’s growth is expected to be 3.7% (down from 5.6% in 2021). In the fourth quarter of last year, the U.S. GDP grew at a 6.9% annualized rate. With the domestic economy stronger, inflation has […]
Air & Rail Market Dynamics Set Stage for 2022
The pandemic stopped a decade of profitable air carrier operations (in 2020 U.S. air carriers lost $35 Billion compared to a $14.7 Billion profit in 2019). In today’s lower traffic environment single aisle jets remain attractive, accounting for 70% of expected new equipment deliveries over the forecast horizon (split between the 150-seat market A320, Boeing 737MAX8 […]
Transportation Equipment Values Headed Up
The $1 Trillion infrastructure bill. When it passes it will be one of the most substantial federal investment programs and will drive demand for freight rail growth. For years global trade held inflation in check. The pandemic shut the system down. The Fed’s monetary policy and government spending have fueled strong consumer demand. Now we […]
RESIDCO’s size and wholesale capability is a competitive advantage. We respond quickly and creatively to ever-changing market conditions.
70 W Madison St, Suite 2200
Chicago IL 60602 – 4275
Recent Posts
AERO AND RAIL EQUIPMENT INVESTMENT – WHAT’S MOVING THE MARKETSJuly 1, 2026 - 4:07 pmWhether a negotiated end to the Iran conflict holds will determine the longer-term direction of energy markets and the pricing of Jet-A and diesel. As Iran flexes its leverage over the Strait of Hormuz, the world’s economies face headwinds and continued Mideast geopolitical turbulence. Oil and jet fuel prices spiked in the early days of […]
AERO AND RAIL EQUIPMENT – CAPTURING COMPETITIVE ADVANTAGEJune 17, 2026 - 8:13 pmNewly confirmed Federal Reserve Chairman Kevin Warsh inherits an inflation rate that has been persistently above the Fed’s 2% target. People who have worked with him say he is unlikely to force outcomes the open market committee won’t support. Warsh feels the path to restoring Fed credibility runs through better methods for measuring and forecasting […]
AERO AND RAIL MARKETS – AN INVESTOR’S PLAYBOOKMay 1, 2026 - 7:32 pmIt’s happened before. The Arab Oil Embargo, which ran from October 1973 through March 1974, was a result of the Yom Kippur Arab-Israeli War.[1] Arab Petroleum Exporting Countries sought to stop oil to any country assisting Israel. Since the U.S. supplied Israel with weapons, a total U.S. oil embargo was imposed, resulting in the price […]