Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Interest Rate Volatility Bodes Ill For Air Lease Stock

Air Lease Corporation (NYSE:AL) stock price is flirting with all time high levels after going public two years ago. The aircraft leasing company is trading more than 30% premium to its book value partly due to bull-side thesis

  1. Best macro environment for airlines in decades
  2. Oil, Interest rates, consolidation all helping the airline industry
  3. Shortage of airplanes demands helping the leasing companies sell aircrafts at a profit
  4. Good manager of asset portfolio
  5. Interest rates at historical lows

Lowest interest environment with best airline fundamentals have certainly created the ideal conditions for Air lease and others in the space but investors seem to be overlooking financial risks like

    Committed liabilities set to rise Interest rate rise to bear negatively ...
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