Aircraft Lessor indexes (equal weighted) including and excluding the acquired and delisted public lessors – AVOL, AYR, and GLS are analyzed and compared against benchmarks in terms of returns, volatility and correlations.
- Inclusive and Exclusive Lessor Indexes underperform the S&P 500 under both price and total return cases.
- Dividends account for a significant difference in the price and total return profiles for both Inclusive and Exclusive Lessors Indexes.
- Inclusive and Exclusive Lessor Indexes outperform the 3M Libor benchmarks and significantly underperform the hypothetical 15% return PE fund.
- Inclusive and Exclusive Lessor industry indexes are more correlated to the S&P 500 under both price and total return cases than would be suggested by industry participants and commentators
- Inclusive and Exclusive Lessor Indexes are very weakly positive correlated to 3M Libor while mildly positive correlation with the 15% return PE fund.