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Residual Value Insurance: A Risk Management Tool for the Leasing Industry
By Vincent A. Kolber
Winter 1985

The article explains how residual value insurance (RVI) can be a powerful leasing industry tool. RVI is shown to be equivalent to a put option. After a discussion of the history and institutional detail of the RVI market, the benefits of RVI for both lessors and lessees are described. Finally, common misconceptions about RVI are addressed.