Something in the air

BNY Mellon / Multi-Asset

17-01-2018

Growing funding pressures and healthy demand are helping to create new investment opportunities in the aviation finance sector. Here, Newton multi - asset income manager, Paul Flood, explores the latest trends in the sector.

In the current low yield, low interest rate environment investment managers continue to explore the potential of ever more diverse asset classes. The g rowing popularity of multi - asset portfolios has helped extend the reach of managers into areas as diverse as gold, emerging markets, liquid alternatives and infrastructure.

Aviation finance is another area attracting increasing interest from multi - asset managers. Banks which once played a major role in the market face growing pressure to limit external lending under capital adequacy requirements, such as Basel III, increasing the need for third - party investment support of funding in the aviation sector.