The aviation asset-backed securities (ABS) market is witnessing a resurgence, marked by the first commercial aircraft ABS transaction in two years. This revival is encouraging for the industry and positions Phoenix American at the forefront of this resurgence with the company’s proven expertise in servicing these intricate transactions.
A Milestone in Aviation ABS
Carlyle’s ASSET 2024-1, marks a notable milestone. This is the first commercial aircraft ABS in two years due to the pause induced by the high interest rate environment . Phoenix American’s appointment as managing agent for ASSET 2024-1 continues a trend as the company was also appointed managing agent for the first aviation ABS issued post COVID-19, CLAS 2021-1 and also the first aviation ABS issued post the the commencement of the Russia/Ukraine conflict, AASET 2022-1. This showcases Phoenix American’s instrumental role in the aviation ABS industry. The first aviation loan ABS, SALT 2021-1, issued by Stonepeak, is also serviced by Phoenix American.
Key Highlights
- Market Encouragement: The successful pricing of ASSET 2024-1 brings optimism about a reinvigorated aviation ABS market, potentially paving the way for more transactions in the near future.
- Historical Context: The aviation ABS market saw a significant slowdown after the Russia/Ukraine conflict with only a few deals executed in recent years. The last major flurry of deals was in 2021, with 15 deals completed that year.
- Seasonal Trends: Historically, the period from September to Thanksgiving is the most active for aviation ABS issuances, and industry expectations are set further deals within this timeframe for 2024.
Phoenix American’s Role
Phoenix American’s expertise and experience are crucial in navigating the complexities of these transactions. The company’s industry position, acting not only as managing agent for the last ABS deal issued before the long pause and the first deal after as well as the pioneering managing agent for the first ever aviation loan ABS transaction, underscores Phoenix American’s comprehensive capabilities.
Aviation Loan ABS
For complete information on the new Aviation Loan ABS structure and its role in the future of structured finance, see the Phoenix American white paper Aviation Loan ABS: A New Vehicle in Aviation Structured Finance at www.pafsi.com/white-papers.
Industry Impact
The return of aviation ABS is significant for global commercial aviation. It not only provides liquidity and financing options for sponsors and lessors but also offers investors attractive yields in a structured finance product backed by tangible assets.
Phoenix American is at the heart of the aviation ABS market’s resurgence. The company’s involvement in the latest transactions and its historical expertise in the aviation industry dating back to 1993 provide a solid operational foundation for future market activities. As the industry looks forward to a more active issuance period, Phoenix American’s role will be central to its success.
Stay tuned for more updates and insights as we continue to monitor and participate in this exciting revival of the aviation ABS market.
