Assuming the identical cost of funds across all borrowing types, how can a capital lease...
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Assuming the identical cost of funds across all borrowing types, how can a capital lease be more profitable than a term loan for the lender?If slightly lower leverage and higher coverage ratios are enough to move the client further on the lender's risk scale, it may decrease the credit spread.If slightly higher leverage and lower coverage ratios are enough to move the client further on the lender's risk scale, it may decrease the credit spread.A higher recovery rate for the lease than the term loan.A higher LGD for the lease than the term loan.
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