Now, the reason why I ask this question is that I started to
think about an empirical study on the influence of lease for
long-term debt swaps on stock returns and possibly more. Since it
is a very fresh idea, just got triggered by Chris' question, I
cannot get more specific than that at this
Why do public agencies engage in sale and leasebacks?
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
shamefully, usually to either avoid tax (NHS Trusts are big players in the
industry) or to subvert restrictions on their ability to make large capital
purchases by substituting for a capital outlay (which might be subject to
some restriction, or possibly the debt raised to buy it might be) for a
Nomi writes:
Airlines do this all the time, too. They borrow
money to buy airplanes, 'sell' the airplanes to
a special purpose entity, which is owned by them,
and then lease the planes back from this special
purpose entity.
Michael writes:
I recall reading in a Nader report from the 70s
Last week it was reported that Hilton hotels
were selling their buildings and land to a Scottish
banking group and leasing them back.
This slightly surprising idea is similar to the thinking
behind the controversial private finance initiative in
the NHS (though that involves a separate
In a message dated 9/2/2002 1:15:08 PM Eastern Daylight Time, [EMAIL PROTECTED] writes:
One of the companies I worked at used this "tool"
and I read about many more firms who made similar arrangements,
sometimes using special purpose entities that are controlled by
the firm. This is an
I recall reading in a Nader report from the 70s that CitiBank had the
third largest airforce in the world after the US and the USSR.
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail [EMAIL PROTECTED]
