Blain's Morning Porridge

Financial Commentary for Smart People

Blain's Morning Porridge

Financial Commentary for Smart People

Category aviation finance

Blain’s Morning Porridge Air Travel Alternative Assets aviation finance

Aero-Engine Problems and AirCraft As An Asset: Opportunity!

This week’s “shock” announcement of a major aero-engine maintenance crisis with RTX engines on Airbus Neo Narrowbodies is reverberating round the aircraft market. It pushes up the value of older aircraft – and will impact many airlines.

Airbus, Boeing, Max, Neo, RTX
Bill Blain
September 15, 2023

Blain’s Morning Porridge Air Travel Alternative Assets aviation finance

New Jet Engines are terribly efficient, but only when they work….

The news “green” Pratt & Whitney engines don’t work very well on new aircraft puts a whole new slant on the economics of airlines – favouring mid-life planes over less reliable, but oh-so-environmentally-more-friendly new ones..

Airbus, Airplanes, Boeing, GE, Pratt & Whitney, Raytheon, RTX, Safran
Bill Blain
July 28, 2023
2

Blain’s Morning Porridge AI Air Travel Alternative Assets Artificial Intelligence aviation finance

The Importance of Real versus Maybe Returns in Investment

AI has become the markets new, new thang/bubble as investors pile into the new, new narrative forgetting the fundamental rules of investment are about generating dull, boring, predictable returns which look frothy in hot stocks, negative yields in bonds, thus positive returns from real assets stand out!

Blain’s Morning Porridge Air Travel Alternative Assets aviation finance Bonds Debt

Aviation – an asset class ripe with opportunity, and more than a few issues..

Aviation is booming. Airlines are buying planes. Passengers want to fly. There are just a few little problems... There aren’t enough planes. That makes Aircraft as an Alternative Asset a great investment opportunity.

Blain’s Morning Porridge Alternative Assets aviation finance Bonds Equities Inflation interest rates

Inflation – Higher Rates for Longer. What to do about it?

Inflation across the West looks to be more entrenched than markets believed – Higher for Longer. Maybe it’s time to accept it’s going to take time to fix, and look elsewhere for returns.

Blain’s Morning Porridge Air Travel aviation finance

The End of An Era in Aviation: Was the Jumbo the Best Plane Ever?

Blain’s Morning Porridge Feb 2nd 2023 – The End of An Era in Aviation: Was the Jumbo the Best Plane…

A320, Airbus, Aviation Finance, B-737, B747, Boeing, Jumbo Jet
Bill Blain
February 2, 2023
5

Higher for Longer – Markets Could Struggle With the New Reality
September 22, 2023
The Bank and The Fed have served notice they will remain vigilant – higher for longer! Markets would be wrong to expect early easing. Wage Inflation and Energy remain very real threats over the medium term – it may trigger volatility as markets understand the new reality.Read More »
Debt is Not The Problem – Economic Management Is.
September 21, 2023
Many market participants fear the rising quantum of Government Debt spells crisis across the globe. Tush and Nonsense. Debt is not the problem – markets exist to price risk. The crisis lies in economic management, and Political Risk!Read More »
U-Turn on Net-Zero Raises Serious UK Market Risks
September 20, 2023
Rishi Sunak’s U-Turn on Net Zero is politically expedient, but raises serious long-term questions about the investibility of the UK economy and its place in the world, but… hey, it might just win them some votes (just don’t let your kids know!)Read More »
The Market has no Memory when it comes to Bank Capital
September 19, 2023
It’s International Talk Like A Pirate Day, which will make it interesting for UBS trying to persuade once-bitten, twice-shy investors to buy new AT1 CoCo Bond after what happened to Credit Suisse investors.. “Arrr… You know it makes sense, young Jim-me-lad… Shiver-me-timbers… “Read More »
Why the UK? Things are going to Get Interesting
September 18, 2023
It’s been a “meh” year for the UK markets, but they’re marginally up on the year. The outlook for a rusted economy, crashing discretionary spending, and an imminent housing collapse looks bad. As the UK electoral cycle kicks into high gear.. markets are in favour of change.Read More »