Do Financial Covenants Have a Place in Equipment Finance? By James M. Johnson, PhD, and Barry S. Marks
Financial covenants are promises by a borrower or lessee to achieve or maintain specific financial targets, often expressed as ratios, such as net worth or total debt levels, or cash flow debt coverages ratios. A survey of banks, independent, and middle-market companies examines whether, in the wake of the Great Depression, financial covenants have become commonplace in equipment finance documentation.
A Cape Town Protocol for Marine Assets: What can We Agree on Right Now? By Michael Kim
The Cape Town Convention on International Interests in Mobile Equipment has served financiers of aircraft and their counsels very well. Such is not the case, however, with the ship finance industry. This article examines past attempts to develop a marine protocol, addresses whether cross border maritime issues are too difficult to fix, and proposes steps and guidelines for tailoring a workable protocol. Momentum may build once an initial set of principles is agreed upon.
M&A Has Rapidly Changed the Canadian Commercial Equipment Finance Marketplace By Hugh Swandel
Since the global crisis of 2008, consolidation and change have redefined the major players in the Canadian leasing industry. As with other types of financial services, the leasing industry was trying to understand a situation few had predicted and none could navigate with certainty. Banks and credit unions have gained market share at the expense of independent and foreign lessors. This article would explain how those changes occurred and what they may portend.