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Feature: Pricing Survey
18 October 2011
Patrick Winters asks leading banks to indicate commercial debt and export credit margins for new narrowbody aircraft.
Rising margins are back. After a calm first six months to the
year during which spreads tightened, debt pricing has become
volatile and uncertain in the second half of the
"There is no commercial debt market for aviation," says one
European banker who asked not to be named.
Pricing is changing every week, because of a lack of dollar
funding at the European banks. French banks, in particular, do
not have deep access to long-term dollar debt, which is more
"Many American money market funds have pulled out of Europe
altogether due to the uncertainty around Greece and that makes
dollar funding in particular more difficult," says Joerg
Schirrmacher, head of aviation, Helaba. Schirrmacher adds that
Helaba has had an easier ride than most European
The shortage of US dollars, the currency by which aircraft
are valued, is driving up the cost of aircraft financing. Banks
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