Recent precipitous share price falls in the Association of Investment Companies' (AIC) leasing sector may have presented an investment opportunity for income-seekers, but caution remains warranted, according to experts.
The sector average fell 20% in the six months to 18 February 2020, sparked by Airbus's decision to cease production of its A380 by 2021 after its main customer, Emirates, dropped orders. All four aviation financing trusts have a high weighting to the plane. BlackRock's Avigdori: Why stockpicking will be essential for UK income investors this year Subsequently, SQN Asset Finance Income lost 40% of its value in the space of 11 days in January after writing down the value of its portfolio of anaerobic digestion plants. Risks to the investment thesis on these vehicles is high, with the...
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