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.
Entries by residco
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 […]
Adapting To Declining Traffic
Weak international trade is hurting international airfreight. Global airfreight volume has fallen for 10 consecutive months year over year (the longest losing streak since 2008). In the three months ended August, North American airlines’ U.S. dollar revenue from air-cargo between China and the U.S. fell 26% relative to the same period in 2018. While transportation […]
Republic Airways and the Sanctity of Contracts Validly Formed
Article 1, Section 10, of the U.S. Constitution (the “Contract Clause”) contains a list of prohibitions concerning the role of the States in political, monetary, and economic affairs [1]. The laws of some countries require damages that may be recovered for breach of contract or other obligations be limited to the level of damage or […]
Globalism Retreat Reduces Freight Traffic
“Economic Nationalism” The President’s September 24th address to the United Nations promoted ‘sovereignty’ above international relations. “The future belongs to sovereign and independent nations, who protect their citizens, respect their neighbors and honor the differences that make each country special and unique.” His favorite themes? Unfair trade, imbalanced defense spending, illegal immigration, creeping socialism, and […]
RESIDCO’s size and wholesale capability is a competitive advantage. We respond quickly and creatively to ever-changing market conditions.
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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 […]