How the banks compete for leasing business
Citicorp Industrial Credit, which has $2 billion in assets, seeks
to offer a full range of services to both the large-ticket and the
middle market. (A middle-market deal involves less than $5 million.)
John Dewey, president, elucidated this full range as meaning:
"Originating, structuring, investing and distributing.'
Citicorp acts both as investor and as distributor. This is
unusual. Entities in the leasing marketplace are, as a rule, either
investors (lessors) or distributors (brokers), or one or the other
depending on the transaction, but not both in the same transaction,
which is often Citicorp's objective. Citicorp Industrial Credit
effectively underwrites, and then may be the investor in its own deal,
or lay-off part or all of it, depending (among other factors) on its
tax-sheltering appetite. Another related technique is the sale of fully
tax-depreciated assets on lease, or shares in such assets.
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