Time to Unwind Synthetic Leases?
John C. Murray
Synthetic lease transactions, as a classic form of off-balanncesheet financing, have been absorbing a public relatiion beating recently in the wake of the Enron Corp. scandal. The fact is that tens of billions of dollars in synthetic leasing transactions have been consummated in the past ten years, and as many as one-half of all U.S. corporations use some form of off-balance-sheet financing (including synthetic leases). Unlike the Enron off-balance-sheet shenanigans, howevver synthetic lease...