The decline of the market is favorable for long-term investment

What's important (or potentially relevant) events occurred in the market in the first three quarters of 2008.? The major recent development is a marked slowdown in the leasing market because of the ongoing financial crisis. The main causes of delay have increased the cost of leasing services associated with a significant reduction in the number of funding sources for leasing companies, and a decrease in pre-crisis demand from potential lessees, as many companies have suspended investment plans before the onset of clarity in the market. Also you can with confidence predict that the main trend of the nearest time will be restructuring the current portfolio of leasing companies, rather than its capacity. In recent years, leasing companies are beginning to deal with the inability of lessees to service current obligations. What is the impact on the leasing market in your opinion would repeal in 2009 of accelerating depreciation coefficients for 1-3 teams? Accelerated depreciation is one of the major advantages of leasing. And this cancellation in any case would have a negative impact on the development of leasing, but it is worth noting that leasing has a number of advantages compared with other ways of investment. On our activities this change will affect is unimportant, since we do not actively worked in the segment of the leasing of vehicles. How the crisis affected the development plans for the company? How the crisis affected the company's product line? Unfortunately, the economic laws presuppose the existence of crises. Group Raiffeisen in the market for a long time and passed through many crises. The technology of the pre-crisis and crisis situations has already been tested for decades. Analysis of the events of last year allowed for the possibility of the crisis, so the strategy of the company was corrected in late 2007. Thus, in the current economic crisis the company has entered a well-prepared, and no additional changes in strategy have been made. What sources of funding were from leasing companies in crisis? I think that in current circumstances, the situation with the sources of funding are not very good. Capital market to virtually none. Leasing companies need to be patient and wait until clarity comes. Unfortunately, another recipe I can not see. Fortunately, every crisis eventually ends, and I hope that soon we will get back to discussing the choice of funding sources. Alternative sources of funding: is it worth now issue bonds and notes? As far as the rates and terms of the bonds attractive to LC? At this stage of the global economic crisis has virtually paralyzed the activities of the capital market. In the case of the company's desire to issue bonds to attract investors, it would have inflated rates. I believe that in such situations the issue of bonds economically unsound. Domestic and foreign lessors "daughter": Who is easier to find the funding? It seems to me that the theme of contrasting domestic and foreign leasing companies are somewhat exaggerated. Leading Russian companies adopt the best of technologies and procedures of foreign leasing companies, and recent better adapted to the realities of the Russian market, especially using the advanced experience of Russian colleagues. At this stage there is a slight advantage for subsidiaries of foreign financial groups. These groups have extensive branch network throughout the world and can count on the funds attracted by subsidiary banks as deposits. But after the restoration of capital markets, investors will look at the quality of leasing companies - strategy development, risk management, technology, conduct transactions, qualified staff, rather than its nationality. Stricter requirements for borrowers: Market recovery or his death? Stricter requirements will not result in the death of the leasing market, on the contrary, it will move to a new level of development. The financial crisis has clearly outlined the challenges of growth in the leasing sector specific, however, for all the growing segments of the economy. Development of domestic infrastructure could not keep up an offer of products and services developed in response to rapid growth in demand from customers. Companies have simply not had enough time and resources to develop and implement risk management systems, automation of internal business processes. The current crisis was the impetus for increased efficiency and has forced many companies to review business strategy. Those requirements for borrowers who have a couple of months ago were considered "conservative" today looks like a "visionary." And the invaluable experience gained by the leasing companies are now faced with problematic customers will consider these risks in future and will contribute to the qualitative development of the market. Private equity: whether to wait for their activity and entry into the capital lessors? Any financial crisis is the most opportune time for long term investment. Because of the overall situation, many companies are undervalued. On-site investor, I would actively considering the possibility of entering into the capital not only to lessors and lessees. In the medium term is a positive impact on their financial results.