Who owns the aircraft you fly on? Most passengers never think about it. Yet more than half of the world's commercial aircraft are leased rather than owned by the airlines that operate them, making aviation finance an increasingly important part of the asset-based finance universe. In this episode of Fixing Your Interest, PIMCO's Kris Kraus is joined by Greg Conlon, CEO of High Ridge Aviation, to explore how aviation finance works, what's driving the opportunity today, and why investors are paying growing attention to the sector. Together, they discuss the rise of aircraft leasing, the forces reshaping airline financing, and the role aviation can play within broader private credit allocations. From This Episode Kris and Greg explain how airlines access the aircraft they need to grow, why leasing has become a dominant source of financing, and what makes aviation a distinctive segment of private markets. They discuss how aviation finance combines contractual cash flows with hard-asset backing, the supply and demand dynamics shaping the market today, and why investors are paying closer attention to asset-based finance as they seek diversification beyond traditional corporate lending. The conversation also covers the long-term growth in global air travel, aircraft supply constraints, the importance of specialist underwriting, and how investors evaluate both the opportunities and risks associated with aviation finance. Key topics include: How aviation finance works and why aircraft leasing has grown over the past two decades Why more than half of the world's commercial aircraft are now leased The role of aviation finance within the broader asset-based finance universe How contractual lease payments can generate income backed by tangible assets Why airlines increasingly rely on leasing to fund fleet growth The supply and demand dynamics shaping the aviation market today How aircraft differ from traditional corporate credit exposures The diversification benefits aviation finance may offer within investor portfolios Why specialist asset management and underwriting expertise are critical in aviation investing How investors assess opportunities and risks in one of private markets' most global asset classes This conversation offers a practical introduction to aviation finance and the growing role asset-based finance plays in supporting the real economy. The discussion and content provided within this podcast is intended for informational purposes only and may not be appropriate for all investors. Reliance upon information provided in a podcast is at the sole responsibility of the listener. The information included herein is not based on any particularized financial situation, or need, and is not intended to be, and should not be construed as, a forecast, research, investment advice or a recommendation for any specific PIMCO or other security, strategy, product or service. Past performance is not a guarantee of future results. All investments contain risk and may lose value. Investors should speak to their financial advisors regarding the investment mix that may be right for them based on their financial situation and investment objective. Podcasts may involve discussions with non-PIMCO personnel and such content contain the current opinions of the speaker but not necessarily those of PIMCO. Other podcasts may consist of audio recording of an existing PIMCO article and such material contains the current opinions of the manager. The opinions expressed in all podcasts are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized. For additional important information go to www.pimco.com/gbl/en/general/legal-pages/podcast-disclosures
