Freight Demand Sustains Transportation Equipment Investment
Air cargo represents less than one percent of global trade by tonnage but amounts to $6 trillion worth of goods moved every year.
Entries by residco
Demand Shock
The coronavirus was the turning point. Schools and universities are being closed. Public activities are being canceled. Air travel and supply chains are being disrupted. Companies are telling employees to stay put. The virus constitutes a force majeure event. Even before the U.S. ban on travel from Europe, Air Carriers were reacting by trimming capacity, […]
Turbulent Markets Lead to Opportunity
Investor interest continues to demonstrate market confidence in Air and Rail transportation equipment.
Headwinds & Heads-Up for Bank-Owned Rail Portfolios
When a National Bank invests in personal property, the Code of Federal Regulations, Title 12 Part 23, and the Office of the Comptroller of the Currency provides regulatory investment guidelines.
PSR Dampens Freight Car Demand as China Trade Revs Up
Eliminating hump yards and running fewer, longer, ‘scheduled’ trains, the Class One’s are continuing to implement Precision Scheduled Railroading (“PSR”).
Loss Aversion: the B737MAX & PSR “Precision Scheduled Railroading”
Strategic decisions are never simple. Despite the significant resources investment managers devote to the decision process, they often make judgments that go wrong because of human shortcomings.
2020 Equipment Values
Residual value forecasting for transportation equipment often begins with an expected value curve that traces ‘value decay’ over an asset’s assumed useful life.
A Decade of Disruption and What To Expect
“A new decade stretches before us.” Crosscurrents from the past decade have swept the unprepared away, so a review of the past decade’s challenges will help instruct future investment. Optimizing investment management will always require a deep understanding of markets, end-user needs, current fleet dynamics, and equipment designs. Boeing’s 737MAX, the Class One’s singular focus […]
2020 – The Challenge
Parsing 2020: restated, third-quarter real gross domestic product increased at an annual rate of 2.1%. As well, consensus economic forecasts predict growth at a moderate pace. Inflation, as measured by the CPI, is expected to edge up. And unemployment is anticipated to remain below 4%. The business fixed investment will continue to slow due to […]
Managing the Components of Risk
With more volatility likely, what’s the maximum level of risk you are willing to take in next year’s markets? The answer requires knowledge of the impact changing traffic levels will have on the values of specific equipment types and portfolio credits. Values that will be driven by the economic, financial, and political environment over the […]
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Recent Posts
AERO AND RAIL EQUIPMENT – STRATEGIES TO CAPTURE ALPHAOctober 8, 2026 - 8:03 pmOn September 16th, with a unanimous 12–0 vote, the Federal Reserve Open Market Committee raised the federal funds rate a quarter point to a range of 3.75%–4.00%, its first hike since 2023[1]. The reasoning was straightforward: inflation remains elevated and the committee prioritized price stability. With the Fed now making pre-tax financing more expensive, the […]
AERO AND RAIL EQUIPMENT – OBSERVATIONS FROM THE FLIGHT DECKSeptember 8, 2026 - 3:56 pmWith the industry expecting passenger traffic to grow 4% annually, Aero equipment leasing continues to benefit from strong demand. Boeing’s Commercial Market Outlook projects the global commercial fleet will grow 80% by 2045 to more than 50,000 commercial aircraft.[1] The crude oil shock has doubled jet fuel prices (the Strait of Hormuz accounts for 23% […]
AERO AND RAIL EQUIPMENT INVESTMENT – NAVIGATING PORTFOLIO MANAGEMENTAugust 12, 2026 - 8:49 pmAs the world shifts from a U.S. dominated system to a multipolar world, constant geopolitical tension is becoming a feature, not a bug. As long as disruption in the Middle East continues, energy prices will remain volatile. The global and domestic supply chain remains challenged, though with some green shoots appearing. Amid this volatility, U.S. […]