Synopses & Reviews
Equipment Leasing is a practical reference for financial managers who need background information, and an understanding of how leasing can be utilized as a cost-effective means of equipment financingespecially under the new tax law in the United States. It explores various types of leases, including single investor leases, leveraged leases, tax requirements for true leases and lease-buy economic analysis. This invaluable resource includes the background and basics of equipment leasing, history of leasing, synthetic leases, financial reporting of lease transactions by lessees, operating a leasing company, and much more.
About the Author
Peter K. Nevitt is one of the pioneers of equipment leasing with over thirty-five years of experience. He is generally credited with being one of the inventors of leveraged leasing and synthetic leasing. Up until 1998 he headed Mitsui Nevitt Capital Corporation for ten years. Prior to that, he served for ten years first as President then as Chairman of BankAmeriLease. Nevitt was also the founder and president of two other leasing companies, GATX Leasing Corporation and First Chicago Leasing Corporation. Nevitt now provides advice to leasing companies as a consultant. He has authored two other books and over 100 articles and booklets on leasing and equipment financing.Mr. Nevitt is an attorney and received his BS and JD from Northwestern University.
Frank J. Fabozzi is editor of the Journal of Portfolio Management and an Adjunct Professor of Finance at Yale University's School of Management. Frank is a Chartered Financial Analyst and Certified Public Accountant. He is on the board of directors of the Guardian Life family of funds and the BlackRock complex of funds. He earned a doctorate of economics from the City University of New York in 1972 and in 1994 received an honorary doctorate of Human Letters from Nova Southeastern University. Frank is a Fellow of the International Center for Finance at Yale University.
Table of Contents
SECTION I: BACKGROUND AND FUNDAMENTALS OF EQUIPMENT LEASING.
1. The Fundamentals of Equipment Leasing.
2. History of Leasing.
3. Financial Reporting of Lease Transactions by Lessees.
4. Synthetic Leases.
5. Federal Income Tax Requirements for True Lease Transactions.
6. A Framework for Analyzing the Lease versus Borrow-to-Buy Problem.
SECTION II: OPERATING A LEASING COMPANY.
7. Considerations in Establishing and Operating a Leasing Company.
8. Credit Policies and Lease Portfolio Administration.
9. Analysis of Financial Statements of Leasing Companies for Purposes of Lending to or Investing in Leasing Companies.
10. Concerns of Manufactures/Vendors in Establishing a Product Sales Financing Program.
11. Lessor Concerns with Disposition of Residuals.
12. Guidelines for Obtaining and Maintaining Adequate Insurance Coverage.
SECTION III: LEASE DOCUMENTATION FOR A NONLEVERAGED LEASE TRANSACTION.
13. Terms of a Typical Nonleveraged Lease.
14. A Typical Lease Schedule.
15. Other Lease Documents.
SECTION IV: LEVERAGED LEASES.
16. Leveraged Lease Fundamentals.
17. Arranging and Documenting a Leveraged Lease.
18. Pricing and Analysis of Leveraged Leases.
SECTION V: STRUCTURED FINANCE FOR LEASING COMPANIES.
19. Securitization and Other Structured Finance Techniques for Equipment Leasing Companies.
Appendix: Historic Milestones in Equipment Leasing.