STRUCTURED WEEKLY: Aircraft ABS Issuers Wing It as Costs Soar

For years, aviation companies sold bonds backed by aircraft leases to investors in exchange for cheap financing. But interest rate hikes and geopolitical tension is making it harder for these businesses to tap into the market now.

Sales of asset-backed securities in the aviation space have plunged this year, with only one commercial aircraft ABS deal coming to market in 2022, totaling about $522 million. Its not just commercial ABS -- issuance across the aircraft space has nosedived, totaling $1.1 billion this year compared to $8.5 billion last year, according to Bloomberg data.

The drop in bond sales is partly ...