The ABS market including the recent inaugural US$637
million asset-backed securitisation ("ABS") by Airborne
Capital is looked at by David McGovern, Killian McSharry, Sarah
Humpleby and Richard Williams, Walkers.
The number of lessors accessing the aircraft ABS market and the
issuance of aircraft ABS has surged in recent years and this trend
continued in 2019. Ongoing strength in air traffic growth,
continued credit performance and syndicated equity transaction
structures has increased investor sponsorship of aircraft ABS. The
number of aviation ABS issuances in 2019 grew to 19 compared to 14
in 2018 while the value of ABS notes issued in 2019 reached $7.9
billion, reflecting a 4% increase on the value of ABS notes issued
in 2018. The proportion of equity notes in ABS deals also continued
to increase in 2019 where $928 million of equity certificates
featured across nine ABS issuances, highlighting the continued
appetite for asset managers in the sector. This compares
