Securitisation glossary by Vinod Kothari
Equipment Trust Certificate- Is a security which is collateralized by ownership of specific equipment, often capital in nature. Normally used in aviation revenues securitisation, this would involve the ownership of the asset, e.g., aircraft, being transferred to the SPV which would issue certificates indicating beneficial ownership of the asset. The asset is leased out by the SPV to the aviation company normally under a full payout dry lease.
Back to securitisation glossary