PT  - JOURNAL ARTICLE
AU  - Prakash Deo
TI  - Cross-Border Lease Financing with Japanese Leveraged Leases
AID  - 10.3905/jsf.13.4.36
DP  - 2008 Jan 31
TA  - The Journal of Structured Finance
PG  - 36--48
VI  - 13
IP  - 4
4099  - https://pm-research.com/content/13/4/36.short
4100  - https://pm-research.com/content/13/4/36.full
AB  - This article analyzes Japanese leveraged leases (JLLs), which have been growing in importance as a method of financing numerous types of assets. JLLs were temporarily placed on hold in response to the 2005 tax reforms, but are about to experience resurgence after a recent tax amendment. Specifically, we examine the financial and related issues including the recent tax reforms that a lessee needs to evaluate when financing an asset utilizing the JLL. We discuss the intricacies of the JLL attributes and structures, and develop a valuation model from a lessee's perspective for evaluating a JLL. This model can be extended to other types of cross-border leases. Finally, we illustrate the evaluation of a JLL utilizing our model with an example in which we derive cash flows, identify the critical variables, and evaluate their impact on the net present value of the lease.TOPICS: Developed, other real assets