AGLF Las Vegas Spring Conference Wrap-up

 

by Christopher Menkin

 

Heard at the Association for Government Leasing and Finance Spring Conference last Friday, Las Vegas, Nevada: “We are busy.” “More federal government business due to the GSA changing rules.” “ Economy to be the same, maybe get worse.” “Profits margins appear to be very tight.” One originator said he felt good to get 25 basis points over the cost of funds on a “small” $300,000 transaction.

 

(One one-hundredth of a percent is a basis point. Thus, if a bond's yield drops from 6.56 percent to 6.51 percent, it is said to have fallen by 5 basis points.)

 

110 attended, and it appeared all were there to learn. The sessions were

full. While there was one session, “Back to the Basics,” it was the only workshop

that appeared be aimed at people new to the industry. I could not identify anyone

in the room that was not already familar with the terms and “basics.”

 

The last workshop of the three day Spring Conference was a lawyer’s panel

“question and answer” session, moderated by Pamela Doherty, Siemens Financial

Services with Panelists Tom Becker, Gilmore and Bell, Buzz Larsen, Chapman &

Cutler, Brade Ruwe, Peck Shaffer & Williams, LLP.

 

It was a full house with many specific questions on documentation, tax treatment. Most of the questions were written, but the audience raised their hand and answers

were given. While it was a serious session, there was humor and laughter from

the audience. Perhaps the best was the “pet peeves” on documentation from

one attorney, which some of his “top ten” brought a “belly laugh” from several

in the back.

 

Many in the audience were making notes, several had very long notes as if they

were taking much down. The panel answered every question. It appeared the

audience did not want the session to end. While it was serious, there was a lot

of inside levity as if they were watching the television show “Jeopardy.”

 

There were many women here, several minorities, and a cross section of age groups, many in the 30 to 40 age group. In the two previous reports, I mentioned how well dressed, polite, friendly, intelligent, and well mannered. If this

was a university, the group consisted of the top fraternity and sorority

on the campus.

 

http://www.leasingnews.org/Conscious-Top%20Stories/AGLF%20-%20Grant%20St.htm

 

http://www.leasingnews.org/Conscious-Top%20Stories/AGLF%20-%20Different.htm

 

The association is seeking new members, but it appears only those already involved in tax exempt leasing. There were no sessions on marketing, telemarketing, public relations, developing vendors, understanding financial statements, lease packaging, software programs, that are common on the commercial side.

 

While there is some “taxable” government leasing, the segment is very small. Transactions are relatively sophisticated, mostly sent out for public bid, and $250,000 is considered a “small ticket transaction.”

 

Municipal and federal government leasing and finance appears to be a growing

money segment, but highly specialized. It is not something you enter by telemarketing or cold calling, and the easiest entrance appears to ride a vendor’s thrust into the marketplace, which is complicated, often engaged in outright bidding (not just calling around to see what the current lease factor is,) and tied directly to prior due diligence, accurate and legal documentation ( not a boiler plate generic contract) and credit analysis that does not rely on a beacon consumer

credit score. Is it complicated? Is it sophisticated? This was one easy

bet to win in Las Vegas.

 

At the end, AGLF Executive Director Graham S. Hauck, not only promoted

the Fall 2003 Conference in Tucson, Arizona form November 12-14, but

reminded members to send out “...at least one postcard to a prospective

new member.”

 

http://two.leasingnews.org/imanges_uael_wael/postcard-front.jpg

 

The professionalism of Mr. Hauck with his Executive Assistant Brian

J. Mandrier, was evident in the material, handouts, prizes galore at the workshops,

and the entire success of the conference.

 

I ran into a gentlemen in Southwest garb in the elevator at the end of the conference who hoped I would come to the Tucson conference. I got the impression he was one of the original founders of the association because he said there was the need 22 years ago to form this group. The elevator arrived at the floor he had chosen, which ended the conversation. I almost felt like getting

off on his floor to finish the conversation, but wasn’t thinking quickly as

my mind was on getting to the airport on time. Perhaps it is a story

for the future how this niche association was born and survives

in this unusual economic time.