Editor's note

Welcome to our summer edition.

Our main feature looks at the leasing powerhouse which is Germany and its experience emerging from 18 months of Covid. Lessors in the Federal Republic say leasing is gaining adherents among SMEs as a preferred way to finance equipment, also interest in the pay-per-use market is picking up.

Another theme in this edition is how inflation will affect those involved in asset finance.

In response to the Covid crisis, the Bank of England (BoE) has doubled its buying of government debt (or quantitative easing, QE). To date, the BoE has bought the equivalent of nearly 40 per cent of the UK's GDP in government bonds, prompting the House of Lords economic affairs committee in mid-July to declare the government it is "addicted" to QE. According to current estimates, by the end of 2021, the BoE will own an eye-watering £875bn of government bonds and £20bn in corporate bonds. With inflation at 2.5 per cent in the UK and 5.4 per cent in the US, concerns remain on both sides of the pond about what a spike in inflation may spell for the asset finance sector.

One of our articles, Navigating inflation’s choppy waters in the equipment finance industry by The Alta Group, considers what a K-shaped recovery means for equipment finance professionals against a backdrop of rising prices. A second article, Should I be worried about the price rise in raw materials? by Andy Stafferton, of UK-based specialist bank DF Capital, looks at the rising prices for timber, steel and shipping and what it means for doing business.

Also, we consider what the OECD’s decision to introduce a global corporate tax charge may have for Ireland’s status as a hub for aviation finance, and much more.

Enjoy your summer break.

Alejandro Gonzalez, Editor