First Ship Lease Trust

[Behappyalways]

yang-mings-massive-loss-prompts-recapitalisation-concerns
http://splash247.com/yang-mings-massive-...-concerns/

Potential downside if:
- One or more charterers default. Both Yang Ming and TORM are not doing well.

This was a big risk for FSL last year. YM accounts for > 40% of FSL revenue, and has the most leveraged B/S among all carriers. The Taiwanese gov (which has 1/3 stake in YM) has stepped in recently to bail it out, so the default risk has subsided.

TORM doesn't look distressed, and its losses in FY16 were mainly due to non-cash vessel impairment. LTV is at a healthy 58%.