Ships as investments

Ships as investments have many features similar to marketable financial instruments like shares, bonds, or traded options:

  1. The market price of a ship can be interpreted as the present value of the expected cash flow from the ship during its remaining economic life, discounted at a rate of return that reflects the market’s perception (pricing) of downside risks and upside
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Spanish Tax Lease Structure

a complex financial-tax structure developed by some Spanish banks based on general accelerated and anticipated tax depreciation measures together with the tonnage tax regime, whose application to the shipbuilding & shipping sector allows the price a Shipowner pays to a Shipyard for the construction of a Vessel to be advantageous compared to the price payable for an acquisition without the … Read the rest

Trade Out Rate

Trade Out Rate to Scrap Value is the Bareboat Rate (Debt Service) per Day required to pay the remaining debt balance down to estimated scrap value over the remaining economic life of the ship. Trade Out Rate to Zero is the Bareboat Rate (Debt Service) per Day required to pay off all the remaining debt balance over the remaining economic … Read the rest