The estimation of future values and lease rates is important for an investor's assessment of a transaction's potential profitability and their portfolio's overall risk/return profile.
     
 
   
   
   
   
   
 
Such valuations are used by financial institutions to price asset-backed debt or determine the amount of credit that should be extended, to determine the amount of any necessary provisions to be made against future losses, and to set the proper residual value in a lease transaction.

The fvDynamics system (patent pending) has been developed by IAA to provide methods which reflect known market realities in the forecasting process, and to give lenders and investors an analytically robust alternative, based on probability distributions.

In addition, the system has been designed with a view to helping financial institutions move forward with the process of implementing the Basel II internal ratings based risk assessment and capital adequacy changes, especially the LGD (loss given default) analysis.

To quote from the Bank and International Settlement website: "The Basel II Framework is intended to promote a more forward-looking approach to capital supervision, one that encourages banks to identify the risks they may face, today and in the future, and to develop or improve their ability to manage those risks. As a result, it is intended to be more flexible and better able to evolve with advances in markets and risk management practices."

fvDynamics

*  Future Value Forecasts over 20 years for 130+ commercial aircraft and corporate jets, including the related probability distributions for each annual forecast.

*  Future Monthly Lease Rate Forecasts over 10 years.

*  Scenario-based "what-if" analysis.

*  Flexible links to standard software packages.

*  Secure server Internet-based access.
 

Contact:

International Aviation Advisors, Inc.
Mr. William Loh, Managing Director


Telephone: (407) 365-8559
Mobile: (407) 234-6620
Fax: (309) 213-9086
E-Mail: info@intlaviation.com

Contents copyright 1998-2008, International Aviation Advisors, Inc. None of these contents may be used without the consent of the owner. International Aviation Advisors ® is a registered trademark.