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Kit Menkin Leasing News
supplies businesses and consumers with information about
the leasing industry. We have
independent, unbiased, accurate, and fair news about leasing. Feel free to browse our site and learn everything
you need to about leasing.
--------------------------------------------------------------------------------------------
Friday, March 23,2003
Headlines---
Pictures from the Past---2002-Marina Del
Rey NAELB Conference
Paul
Torres joins the Leasing News Advisory Board
Gartner
Dataquest Worldwide Software Spending
UAEL
Dallas Regional Meeting April 3, 2003-Free to All
UAEL
Ship About to Sail July 19-26,
2003
400 attendees
ELA "Got Funding" April 9-10 Chicago
ExecutiveCaliber's First Annual Advanced
Sales Training Seminar
$4.2B in US
Defaults vs. $16.4B In 2002
Equipment
Leasing Licenses "by State" Requirements Project
This Border ##### Denotes Press Release (Not Written By Leasing
News)
--------------------------------------------------------------------------------------------
Pictures from the Past---2002—Marina Del Rey NAELB
Conference
National Association of Equipment Leasing Brokers Marina
Del Rey, California
Conference (right
now, they are meeting in Chicago, Illinois)
http://www.naelb.org/images/regmeeting02/17-30a.jpg
Gary Souverein, of Pawnee Leasing; Brad Petersen of Manifest
Funding
http://www.naelb.org/images/regmeeting02/14-18a.jpg
This regards the National Association of Equipment Brokers
Conference Skit:
CSI Marina Del Rey. A version of it is to be repeated at
the March 20-23 Chicago
Conference. Standing, left to right: Rick Wilbur, Mediacap;
Bob Teichman, Teichman Financial Training: Mike Meacher, Bankgroupline;
Bob Bell, Independent Leasing. Seated:
Ken Goodman, CLP, Midwest Leasing
Group.
http://www.naelb.org/images/regmeeting02/12-36a.jpg
UAEL President, Bette Kerhoulas; NAELB President, Gerry Egan;
NAELB
Secretary/Treasurer, Donna Cole
Classified Ads---Jobs Wanted
Finance: Atlanta, GA
Twenty five plus years experience in middle market lease/
asset based/cash flow transactions. Heavy banking and credit background,
with particular expertise in structure and negotiation. Email:brown235@bellsouth.net
Finance: Lyndhurst, NJ
CFO w/20+ years leasing/financing. Respected by lenders/rating
agencies full & fair financial reporting. Outstanding record restructuring
debt. Adept at investor relations and mentoring people. Email:joemcdev@aol.com
Legal: Los Angeles, CA
Experienced in-house corporate and financial services attorney
seeks position as managing or transactional counsel. Willing to re-locate.
email:sandidq@msn.com
Operations: Wayne, NJ
20+ heavily experienced collection/recovery VP looking to
improve someone's bottom line. Proven, verifiable track record. Knowledge
of all types of portfolio. Will relocate Email:cmate@nac.net
Operations: Experienced Credit, Collections, lease
and Finance operations. Manager w/ expertise in improving bottom line
performance, excellent trainer, manager, motivator. Get result/ keep
the customer coming back. Email:rgmorrill@comcast.net
Receptionist: San Diego, CA.
An outgoing, people loving person. Can handle several tasks
at once. 35 wpm, some receptionist exp.in high school office, &some
comp.knowledge. email:dvynangel69@msn.com
Fifty-One Job Wanted ads at: http://65.209.205.32/LeasingNews/JobPostings.htm
--------------------------------------------------------------------------------------------
Mortgage Rates Edge Up
The first break in a long downward trend, Freddie Mac, the
mortgage company, reports in its weekly nationwide survey that mortgages for the week ending on Friday are
5.79 percent, up from last week's record low rate of 5.61 percent.
15-year fixed-rate mortgages went to 5.11 percent, compared
to 4.93 percent the week before, which was the lowest rate since Freddie
Mac began tracking 15-year mortgages in 1991.
__________________________________________________________________
Paul Torres joins the Leasing News Advisory Board
“I first met Paul when he was the credit manager for Warren
Capital, Novato, California, “ Christopher “Kit” Menkin, editor and
publisher of Leasing News, Inc., said. “When his name came up to fill
a recent vacancy on our board, it was a unanimous first vote decision.”
Paul is a native of Fullerton, Southern California. He graduated
in 1988 from Fullerton State University w/ a BA in Finance. After graduation,
he worked for Ford and Toyota Credit in various servicing functions.
“One of the smartest things I've done was to move to the
Bay Area in the
middle of the 1990 recession without any job prospects but
a desire to get
out of consumer finance, “ he said with a chuckle in his voice. “ One of the dumbest
things I've done is to move without a job offer in hand.
“I took a job at local electrical parts wholesaler and worked
in their
business credit department, “he continued. “ When this company
ceased operations, one of their funding sources, Warren Capital of Novato,
CA gave me a job in portfolio management.
“ I learned leasing credit and collection concepts from Jeff
Allard ( I also learned a lot from Doug Hatch, brokering deals to Bank
of the West.) ..... I learned how to solve problems and finesse a business
situation from Clay Stephens. Both men are a lot of fun to work with
and were willing to help me learn as long as I kept up asking new questions.
“After 8 years with Warren Capital Company, I became the
West Coast Director for First Bank of Oak Park, Ill. I was responsible
for bringing in brokers and packaging their customer's equipment needs
request.
“A little later, A great opportunity happened when Jeff Allard
became Chief Operating Officer of Bay View Commercial Leasing , part
of Bay View Bank. He brought me in as area vice-president to handle
all business under $200k; from market development, underwriting, to
administration.
“Our small group in a short period of time put up very good
profitable volume and
generated a lot of good will in the broker /lessor communities.
“ It was a daily 95 mile round trip --- but I enjoyed the
control and success we had, “ Paul said. “ Unfortunately, our parent
bank company bought FMAC and subsequently liquidated profitable operations
in an attempt to stave off insolvency.
“ In the last few years, I have worked for Trinity Capital
of San Francisco, a
company founded by Jim and Donna Halow and recently merged
with Bank of the
West.
“ The Halows bring to work everyday an intelligence, work
ethic and
dedication rare in our industry. They have taught me the
subtleties of the
vendor finance leasing market. They have been very generous
to me in a time
of need.
“ Here at Trinity, I have also had the opportunity to work
w/ the
legendary Dave Johnson, an excellent " Car Guy " salesman who truly
understands the importance of service and hustle. There are
many other good
people in our 80+ person company. I enjoy working in the
Trinity Credit
Department, especially making a profitable deal "happen"
while maintaining professional service.
“I am an " Old School " Credit Guy. For example,
Torres Truism # 3:
‘ Credit is an art form, not a science. If you want to follow
and quote scores,
then go to a baseball game. ‘
“After hours at home, I play rhythm guitar, piano and bass.
I have been
playing music for 25 years. Songs by Hoagy Carmichael, Rodgers
Hart
Hammerstein, Ray Noble, McCartney and Declan McManus tunes
are among my
favorites. I enjoy jamming with other musicians as long as
they can read
music and can call out a few tunes of their own.
“I have been married for 7 years to the same woman (Laura.)
“Take care and we pray for your son and all of our troops.”
Editorial
Advisory Board
Bob Baker, Wildwood
Financial, St. Louis, MO
Steve Crane, Bank of the
West, Walnut Creek, CA
Phil Dushay, Global Leasing,
New York, NY
Steve Geller, Leasing
Solutions LLC, Wesley Hills, NY
Ken Greene, Attorney, Greenbrae,
CA
Bruce Kropschot,
Kropschot Financial Services, Vero Beach, FL
Fred St. Laurent, Managing Director -
Recruiting, Bradbury and Williamson, Duluth, GA.
Charlie Lester, LPI Financial,
Marietta, GA
Bob Rodi, LeaseNow, Warrendale,
PA
Bob Teichman, Teichman Financial
Training, Sausalito,CA
Rob Yohe, Yohe and Associates, Stilwell,
KS
Ginny Young, Brava
Capital, Orange,
CA
“We are an electronic newspaper for the entire leasing industry,
not just one segment. We also are not just for executives, presidents,
CEO, but for all the employees.
“For years, I have been telling the directors of the associations
I belong to, we need to get all the employees involved. When I was regional
chairman of one, I had meetings, inviting operations and other people
to meetings, to mingle, learn from each other, and help each other.
It is silly to think an employee is going to remain at the same company
for 30 years. There are no more Bob Cratchets. When employees learn
more, or have better opportunities, their employer should be doing more
to keep them happy, and if not, move on. Presidents do this. Sales managers
do this. Why can't everyone do this?
“We encourage everyone in the leasing industry to read our
electronic newspaper and hope we are serving the entire spectrum. “
Christopher “Kit” Menkin, Editor/Publisher
--------------------------------------------------------------------------------------------
#### Press Release #############################################
Gartner Dataquest Says Worldwide Software Spending To
Stabilize in 2003
Spotlight Report Examines Trends For the Software Industry
SAN JOSE, Calif. — The worldwide software industry is experiencing
the combined effects of economic uncertainty and lower business confidence
in software investments, which is severely constraining corporate spending,
according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
The industry will return to positive, stabilized growth in
2003, as worldwide end-user spending on software is forecast to reach
$76.1 billion, a 3.5 percent increase from 2002 spending. In 2002, worldwide
software revenue declined 0.7 percent, with revenue of $73.5 billion.
"Renewed IT software spending will only occur in many organizations
after a prudent review of the supplier options and the business priorities,"
said Joanne Correia, vice president for Gartner Dataquest's Software
Industry Research group "Despite the backlog of pent-up demand,
vendors will continue to deal with a new extended sales cycle, resulting
in more pressure on margins."
"Uncertainty is riding high with a very restrained economic
outlook, so it can only be sensible to advise continued caution for
the near future," said Thomas Topolinski, vice president for Gartner
Dataquest's Software Industry Research group. "While some sectors
are seeing increased demand, other sectors are losing their share. The
most prudent planning assumption is that, at least for the next 12 months,
overall global demand for software licenses will remain as static as
it is today."
While the continued tightening of budgets hinders short-term
software license revenue, Gartner Dataquest analysts said that this
is good news for the top-tier software vendors who will continue to
take market share from the pure-play vendors.
Gartner Dataquest analysts refer to these top-tier vendors
as titans (vendors that have achieved dominant market share in more
than one software market segment by offering a diversified and often
integrated line of software products). Pure-play vendors derive most
of their software revenue from the sale of products within one market.
The realities of the weak economy continue to shift the competitive
advantage from pure-plays to titans.
Through 2003 and 2004, enterprises will continue to invest
primarily in technologies that drive business process cost efficiencies
from their existing investments. The business value of IT has become
a major factor in decision making. For enterprises to make new software
investments, it will be critical for simultaneous investment in new
technologies (hardware, wireless and Web services) that will help achieve
short and long term return on investment (ROI).
More analysis is available in the Gartner Dataquest research
Spotlight Software Market Stalled in Global Economy's Slow Engine. This
Spotlight features reports that look at the current condition of the
software market and outlines Gartner's predictions for the enterprise
software market during the next few years. This Spotlight can be found
on Gartner's Web site.
This information is produced by Gartner Dataquest's Worldwide
Software Industry group. This research group provides analysis on infrastructure
and application product market trends, player positioning and channels
of the packaged business application software market. To subscribe to
Gartner Dataquest's Software Applications or Infrastructure Worldwide
programs, please call 408-468-8000. Reports can be purchased on the
Internet at www.gartner.com.
Gartner will provide additional analysis on the outlook for
the software industry at Gartner Symposium/ITxpo 2003, to be held March
23-27 at the San Diego Convention Center in San Diego, California. Gartner
Symposium/ITxpo is the IT industry's largest and most strategic conference,
providing business leaders with a look today at the future of IT. For
more details or to register for Gartner Symposium/ITxpo 2003, visit
www.gartner.com/us/symposiumwest or call 1-800-778-1997. Members of
the media can register for the event by contacting Maria DiMasi at 212-699-2734
or e-mailing GartnerEvents@middleberg.com.
Gartner Dataquest, a unit of Gartner, Inc., is the recognized
leader in providing the high technology and financial communities with
market intelligence for the semiconductor, computer systems and peripherals,
communications, document management, software, and services sectors
of the global information technology industry.
About Gartner:
Gartner, Inc. is a research and advisory firm that helps
more than 10,500 clients leverage technology to achieve business success.
Gartner's businesses consist of Research, Consulting, Measurement, Events
and Executive Programs. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 4,000 associates, including more than
1,000 research analysts and consultants, in more than 75 locations worldwide.
Fiscal 2002 revenue totaled $907 million. For more information, visit
www.gartner.com.
#### Press Release #############################################
UAEL Dallas Regional Meeting April 3, 2003—Free to All
United Association of Equipment Leasing
April 3rd,2003
The 2003 Kick Off Regional Meeting
Take Part In Planning Local Activities For 2003
Your Input and Involvement Counts!
This Special Event Includes:
A Short Presentation by Lynn Prude—CEO of Sterling Bank Dallas
Come hear Lynn discuss the state of the North Texas economy
from a banker's perspective!
and
FREE hot buffet including buffalo wings, potato skins and
chips-n-salsa.
FREE Billiards
Non-Hosted Happy Hour Drink Specials
Where: Fox and Hounds
English Pub
1640 S. Stemmons Freeway, Lewisville, TX
(On the service drive just north of Corporate Drive Exit
off I-35E)
When: Thursday, April
3rd, 2003
Time: 5:30–7:30 pm
Speaker: 6:00–6:30 pm
Cost: Nothing, as
in FREE (we will be holding a 50/50 raffle with half to the winner and
half to UAEL)
Questions? Contact: Ron Mitchell or Jim Lahti at 972-221-7335
or the UAEL Office at 760-564-2227
### Press Release ###########################################
UAEL Ship About to Sail
July 19-26, 2003.
The deadline is approaching at the end of March to register
for the United
Association of Equipment Leasing sponsored Alaskan Cruise
July 19-26, 2003. Anyone planning
to take advantage of this vacation opportunity should reserve their
space immediately at www.uael.org
A number of people have confirmed their cabin. Quite a few more have shown interest and made
a verbal commitment. The time
to formally commit is upon us. This
is reported to be the best of the Summer Alaskan Cruises and the price
is very competitive. UAEL benefits
from all participants, members and non-members.
Hope to see you aboard the Radiance of the Seas !
Jessica Roell
UAEL
#### Press Release #############################################
400 attendees have registered so far for the Equipment
Leasing Association National Funding Exhibition, "Got Funding",
April 9-10 at the Fairmont Hotel in Chicago.
42 Funding Sources ready to do business
Don't miss out, register today
http://www.elaonline.com/events/2003/fundexhome.cfm
and begin making appointments with Funding Sources. Schedules are filling
up fast, so don't delay!
If you have already registered, continue checking the funding
site for available appointments with new exhibitors that you might want
to see. The site is in a constant state of flux (appointments getting
cancelled and added) and you may be able to schedule with a funding
source that wasn't previously available
---
The Equipment Leasing and Finance Foundations holds its annual
Golf Outing on Monday, July 21, 2003 at Essex County Country Club, West
Orange, NJ. Space fills up fast
-- get your two-person team together and register for the outing through
the link below. The Shot Gun
format allows for all skill-levels to play and provides a great day
of networking. Funds raised through the Outing support the Foundation
and its industry research and studies.
Sponsorship opportunities are also available. To register to play golf and for sponsorship
information visit the Foundation website at
http://www.leasefoundation.org/golf/
or call Lisa Levine at 703-527-8655.
--
ELA Now Accepting Session and Workshop Proposals for Annual
Convention
******************************
Proposals are now being accepted for session and workshop
ideas at the 42nd ELA Annual Convention, scheduled October 12-14, 2003
at the Manchester Grand Hyatt in San Diego, California. If selected,
you will be invited to make a presentation at one of the concurrent
breakout sessions scheduled Monday, October 13th or workshops scheduled
Tuesday, October 14th. All proposals will be carefully reviewed by a
committee of your peers. Proposals should reflect this year¹s theme,
³Trust in Excellence.² Deadline for submission is May 1, 2003.
For complete proposal guidelines, please go to the Events
and Training section of ELA Online, http://www.elaonline.com/events/2003
call.htm or contact Janet Fianko at jfianko@elamail.com
to receive the guidelines via email.
--
Are you wondering what the rest of the industry does when
it comes to
Collections? You will find answers to this and other questions
at the ELA Credit & Collections Management Conference, scheduled
for June 8-10 at the Ritz Carlton Hotel in Philadelphia, Pennsylvania.
At this session, attendees will learn what works and what doesn¹t based
on ticket size and the type of equipment being financed, and how to
make changes without loosing effectiveness.
A survey of the industry, combined with credit reporting information,
will provide a comprehensive session on the best collection practices
in the industry.
For complete details and to register, go to:
http://www.elaonline.com/events/2003/credcoll/
--
Please visit ELA's Calendar of Events online at
http://www.elaonline.com/events/
If you have any questions about ELA conferences and workshops,
please
contact Lesley Sterling at lsterling@elamail.com
March 24-26, 2003
Principles of Leasing II (NEW)
Four Points Hotel (Chicago O'Hare), Schiller Park, IL
http://www.elaonline.com/events/2003/principlesII/
March 26, 2003
Credit Scoring & Decision Automation in the Leasing Industry
Four Points Hotel (Chicago O'Hare), Schiller Park, IL
http://www.elaonline.com/events/2003/credscore/
April 1, 2003
Lessees and Bankruptcy: A Practical Look
12:30 pm Eastern, 90-minute, telephone seminar
http://www.elaonline.com/events/2003/bkrptcy/
April 7-9, 2003
Principles of Leasing Workshop
Marriott Fisherman's Wharf, San Francisco, CA
http://www.elaonline.com/events/2003/principles/
April 9-10
National Funding Exhibition
Fairmont Hotel, Chicago, IL
http://www.elaonline.com/events/2003/fundingexhib/exhibitors/
April 13-15
Captives & Vendor Leasing Conference
World Golf Village Renaissance Resort, St. Augustine, FL
http://www.elaonline.com/Events/2003/captive/
April 14-16
Principles of Leasing Workshop
Courtyard Marriott, Philadelphia, PA
http://www.elaonline.com/events/2003/principles/
April 27-29
Large Ticket Conference
Four Seasons Resort & Club, Irving (Dallas), TX
http://www.elaonline.com/Events/2003/largeticket/
May 4-6
Legal Forum
Westin Copley Place, Boston, MA
http://www.elaonline.com/Events/2003/Legal/
May 5-7
Principles of Leasing Workshop
Hyatt Regency Woodfield, Schaumburg, IL
http://www.elaonline.com/events/2003/principles/
May 14-15
Capitol Hill Day
JW Marriott Hotel, Washington, DC
http://www.elaonline.com/Events/2003/capthillday/
### Press Release ##############################################
ExecutiveCaliber's First Annual Advanced Sales Training
Seminar for Equipment Leasing Professionals Will Help Accelerate Leasing
Sales Success
Select Group of Professionals Will Learn From World-Renowned
Leasing Experts -
Jeffrey Taylor, David Mayer, Jon Haas, & Ken Goodman
- As Well
As Former Miss America, Sharlene Wells Hawkes, in a 3 1/2-Day
Setting
This June in Salt Lake City
BOUNTIFUL, Utah, / -- ExecutiveCaliber, a leading provider
of products and services to leasing professionals, today announced its
first Leasing Academy Annual Sales Training Seminar.
Slated for June 9, 2003 through June 12, 2003 in downtown
Salt Lake City, the 3 1/2-day seminar is designed to help equipment
leasing professionals learn how to accelerate their leasing sales efforts
through sessions on such topics as "Advanced Marketing Concepts,"
"Lease vs. Buy Analysis," and "Current Pricing and Funding
Alternatives."
"The Leasing Academy training, combined with our experienced
presenters, provides and delivers the most advanced leasing sales training
environment in the world," said Jeffrey Taylor, founder of ExecutiveCaliber
Global Lease Training and a Certified Leasing Professional (CLP).
"Even the seasoned equipment leasing professional can discover
new ideas from this unique training experience, which can help generate
more sales in a tough economy. Experience is the best teacher.
What more can be said."
Jeffrey Taylor is a licensed Certified Public Accountant
with more than 20 years of lease training experience. Taylor received a master's degree in business administration from
the University of Chicago and has delivered his lease training workshops
and lectures in 13 countries. He
is also the publisher of Leasing Gems, a semi-monthly e-newsletter with
13,000 readers in 110 countries.
The 2003 Leasing Academy Annual Sales Training Seminar includes
presentations from three additional world-renowned leasing experts including:
* David G. Meyer - a practicing attorney for 25 years, author
of Business
Leasing for Dummies and publisher of Business Leasing News.
Meyer
specializes in complex large-ticket transactions.
* Jon Haas, CLP - a 30-plus year veteran of the financing
and leasing
industry. Haas is
also co-author/editor of the CLP Leasing Professionals
Handbook. Haas specializes
in improving back-office operations.
* Ken Goodman, CLP - a 30-plus year veteran of the equipment
leasing
industry. Goodman
is co-author of the CLP Leasing Professionals Handbook.
Goodman specializes in telemarketing and pricing optimization.
Also presenting at the seminar will be former Miss America
Sharlene Wells Hawkes. Hawkes
will use her unique life experiences as one of the first on-air woman
reporters at ESPN to motivate audience members to challenge their comfort
zones.
"Our goal with the 2003 Annual Sales Training Seminar
is to move leasing professionals out of their comfort zones, while giving
them very specific sales and marketing knowledge that is applicable
to the leasing profession," Taylor said.
"In this way, attendees will leave the seminar with new
tools designed to help them identify more prospects, qualify more leads,
close more sales, and generate more revenues."
The 3 1/2-day seminar will be held at the Shilo Inn in downtown
Salt Lake City, home to the 2002 Winter Olympics. The fee to attend the seminar is $3,500 and
includes the following: four night accommodations at the Shilo Inn,
transportation to/from the Salt Lake International Airport, four breakfasts,
cocktails/dinner at the Taylor Home on Monday evening, cocktails/dinner/sunset
cruise on the Great Salt Lake on Wednesday evening, guest passes to
popular Salt Lake nightspots, advance copies of the training materials
and course materials, and a graduation diploma and gift.
Attendance to the 2003 Leasing Academy Annual Sales Training
Seminar is limited. For more
information or to make reservations to attend the 2003 Leasing Academy
Annual Sales Training Seminar, interested parties can go online to http://leasingacademy.com
or call 801-299-9332.
About ExecutiveCaliber
ExecutiveCaliber - Global Lease Training is a company designed
to develop and implement advanced sales training for equipment professionals
throughout the world. ExecutiveCaliber
is the parent of The Leasing Academy, an advanced leasing sales training
seminar taught by individuals with more than 100 years of combined leasing
experience.
### Press Release ##############################################
2003 High Yield Off To Promising Start; $4.2B in US Defaults
vs. $16.4B In 2002
Fitch Ratings-New York The U.S. high yield default tally
for the first two months of 2003 totaled $4.2 billion for a two month
default rate of .7% and a trailing twelve month default rate of 14.5%,
down significantly from 2002's full year default rate of 16.4%. In the
first two months of 2002 34 issuers defaulted on $16.4 billion in bonds.
This year's volume count for January and February was just a quarter
of the comparable period in 2002 and was accompanied by an equally meaningful
drop in the number of defaulted issuers, from 34 in 2002 to 18. The
18 issuer defaults, an average of 9 per month, is fairly even with the
pace of issuer defaults in the second half of 2002.
The absence of large telecommunication defaults brought default
volume per issuer down to $233 million, close to historical levels.
In contrast, the average balance per defaulted issuer in 2002 was $674
million, primarily a result of the large scale telecommunication defaults.
Even excluding WorldCom's bankruptcy filing in July ($26.3 billion of
the 2002 U.S. default count of $109.8 billion), telecommunication defaults
averaged $800 million per issuer in 2002. Also contributing to the lower
default rate thus far into 2003 is the larger size of the high yield
market. Through a combination of new issuance (in excess of $100 billion
in 2002) and the record number of fallen angels (excluding defaults,
$110 billion in 2002), the U.S. high yield market stands at approximately
$615 billion, up 20% from $518 billion at the beginning of 2002.
In addition to its larger size, the market's rating mix has
improved in terms of the vintage distribution of outstanding issues.
As of December 2000, approximately 61% of the market consisted of bonds
sold from 1997 through 1999. A year later, at the end of 2001, that
concentration had fallen to 51.1%, and at the end of 2002, just 35%
of the market came from the three years. This is a very meaningful trend
with regard to defaults since bonds sold from 1997 through 1999 made
up approximately two thirds of defaulted issues beginning in 2000 through
2002. Defaults for non-investment grade companies traditionally peak
three to four years following issuance. Since the troubled 1997 - 1999
bonds now make up just a third of the high yield market and we are now
four to six years past original issue for the three years, default risk
for the market overall has declined. This is further supported by the
higher quality of new issuance beginning in 2000 through 2002. Nonetheless,
Fitch expects the default rate will remain elevated this year. There
are still substantial risks, both structural and fundamental. At the
end of February, approximately $120 billion in bonds carried a rating
of 'CCC' to 'C', a troubling level which has persisted despite the large
volume of defaults.
The top five industries represented in the 'CCC' to 'C' pool
include telecommunication at $41.8 billion, cable at $13.9 billion,
energy at $9.7 billion, computers and electronics at $6.1 billion, manufacturing
at $4.8 billion and transportation at $4.4 billion. A quick look at
the industry mix and considering the state of the economy and the prospect
of war, all point to more defaults in 2003. The one upside is that most
of the 'CCC' to 'C' issues are in fact trading at deeply distressed
levels. As long as defaults continue to represent a purging of distressed
companies, following the inevitable path to bankruptcy or restructuring,
the incremental cost of the defaults should be contained. The true danger
lies in the possibility of a new wave of defaults brought about by war
disruptions to consumer and business spending and credit availability.
Fitch's default studies for the U.S. and European high yield markets, titled 'High Yield Defaults 2002, The Perfect Storm' and 'One Quarter of the European High Yield Market Defaults in 2002', respectively, are available on the Fitch Ratings web site at 'www.fitchratings.com' in the 'Credit Market Research' page. A full listing of 2002 defaults, an analysis of default and recovery rates by industry, and a review of credit quality measures for the two markets is also available.
Overview of the Fitch U.S. High Yield Default Index
Fitch's default index is based on the U.S., dollar denominated,
non-convertible, speculative grade bond market (the rating equivalent
of 'BB+' and below, rated by Fitch or one of the two other major rating
agencies). Fitch includes rated and non-rated, public bonds and private
placements with 144A registration rights. Defaults include missed coupon
or principal payments, bankruptcy, or distressed exchanges. Default
rates are calculated by dividing the volume of defaulted debt by the
average market size for the period under consideration. Fitch's high
yield default studies are available at 'www.fitchratings.com'
Contact: Mariarosa Verde 1-212-908-0791 or Paul Mancuso 1-212-908-0225,
New York.
### Press Release #############################################
______________________________________________________________
Equipment Leasing Licenses “by State” Requirements Project
This is an idea by Jim Hill of Private Label Leasing, Inc.,
to compile
a list by state of licensing requirements.
You are being asked to contribute by sending information
on your
state’s requirements to: license@leasingservice.com.
The Subject line should be "License" + the two
letter abbreviation for the
State they are responding about.
Example: "License NY" or License MA" or "License
CA", etc...
Jim will then convert this into an Excel spreadsheet that
we can output to htm to post on Leasing News.
We ask you to confirm the information to the best of their
ability
prior to submitting it.
If you are able to attribute the information to your State
website, please
sub-title the state’s website page. If you confirm the information
in
another fashion, then have them give a reference to where
the information
came from.
By providing the confirming source information with the data,
everyone who
uses the information will have the opportunity to confirm
the information
themselves as to how it applies to their specific situation.
This hopefully
will both make the information “accurate” to the best of
our ability, plus
eliminate any "liability" for providing the information.
We will make a disclaimer, but the point is to get started
and to help
other states just as Leasing News as pointed out the need
for the
Finance Lender’s License in California.
Any questions, you may want to contact:
Jim Hill
Private Label Leasing, Inc.
mailto:jahill@leasingservice.com
800-451-6567 Voice/Fax 866-571-3921
__________________________________________________________________
News Briefs---
Saudis Have Been Raking In Oil Money
http://www.nytimes.com/2003/03/21/international/middleeast/21SAUD.html
Contract manufacturer Solectron to cut 12,000 jobs
Handheld computer maker Palm reports quarterly loss on
sluggish demand
http://www.boston.com/dailynews/079/economy/Handheld_computer_maker_Palm_r:.shtml
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www.leasingnews.org
Leasing News, Inc. 346 Mathew Street, Santa Clara, California 95050 E-Fax: (781)459-4789 kitmenkin@leasingnews.org 
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