Underwriting

Residual value

status: draft

Expected value of an asset at lease end or disposition, commonly relevant for auto leases, equipment, aircraft, rail, and shipping.

What to watch

Residual value risk is market risk, not borrower credit risk. Capital providers usually want conservative marks or third-party support.

Referenced in 15 topics

Aircraft leases asset-classes Auto loans and leases asset-classes Building your ABF pitch playbooks Container leases asset-classes Equipment leases and loans asset-classes Fund investor reporting for ABF operations-lifecycle Multi-party negotiation dynamics playbooks NAV and liquidity considerations accounting-valuation Pharma royalties asset-classes Pool formation and onboarding operations-lifecycle Rail cars and rolling stock asset-classes Rating agencies counterparties Solar / renewable energy (PACE, PPA, solar loan) asset-classes Volcker Rule implications legal Your loan tape: what lenders actually look at playbooks