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U.S. Bancorp Piper Jaffray Fixed Income Analysts Publish Second Edition Of 'Aircraft Finance - EETC Desk Reference 2002-2'

- Report Highlights Refined Measure of Risk Analysis in Collateral Coverage -

MINNEAPOLIS, March 5 /PRNewswire-FirstCall/ -- The U.S. Bancorp Piper Jaffray Aircraft Finance Team recently published an updated comprehensive report on Airline Enhanced Equipment Trust Certificates (EETC) titled, "Aircraft Finance - EETC Desk Reference 2002-2." The report contains comprehensive information for both investors and issuers on one of the nation's largest industries.

The desk reference focuses on the value of aircraft assets backing the debt. The 2002-2 edition defines the factors that drive value changes and discusses how they impact near-term values, including: economic conditions, aircraft availability, new aircraft prices, product life cycles and specifications.

This edition also features collateral coverage, a refined measure of risk for EETCs. "Historically, loan to value (LTV) has been the most common measure for assessing risk levels for secure debt," said Joel Denney, director of Fixed Income Research for U.S. Bancorp Piper Jaffray. "Given the current environment for aircraft values where LTVs often exceed 100 percent, particularly in the case of subordinated debt, LTVs become difficult to interpret. Recovery of par become more meaningful when the LTV rises above 100 percent, indicating the value of collateral would not cover the total loan amount. Our collateral coverage incorporates both concepts of LTV and recovery."

Denney states that given a forecasted aircraft portfolio value, a collateral coverage ratio greater than one represents adequate coverage. Conversely, a collateral coverage less than one time signifies potential loss of principal. Denney anticipates that using an inclusive risk metric that is simple to interpret will broaden its use.

In addition, the report includes enhanced short-term and long-term models highlighting relative value opportunities. The short-term models focus on aircraft values today and current collateral protection. The long-term models utilize a future market value forecast to assess the relative value and risks over the life of each bond. Applying a uniform approach to aircraft values, transaction expenses and model assumptions highlights strong structures and identifies relative value.

The 2002-2 EETC Desk Reference analyzes 62 public and private EETC transactions. The report features a number of tools to quickly depict the strongest structures from each issuer as well as across the sector. For more information regarding this report please contact Joel Denney in the U.S. Bancorp Piper Jaffray Fixed Income Research Group at jdenney@pjc.com .

U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based U.S. Bancorp (NYSE: USB), is a focused securities firm comprised of three divisions: Equity Capital Markets, Fixed Income Capital Markets and Private Advisory Services. The firm provides a full range of investment products and services to individuals, institutions and businesses. The firm has over 120 offices in 24 states across the country. The Equity Capital Markets Division focuses on the needs of growth companies in the health care, technology, financial institutions, consumer and communications growth sectors. The firm has a national reputation for its expertise in fundamental research and equity and debt financing. The Fixed Income Capital Markets business provides bond issuers, individual investors and institutional investors expertise in investment banking, underwriting, trading, sales and research. The firm offers innovative solutions in corporate and government debt financings with particular expertise in corporate, health care/hospitals, real estate, higher education and government debt. The Private Advisory Services division financial advisors provide guidance in retirement planning, education planning, estate planning and wealth accumulation. Investors select from a wide array of products, including fee-based products, stocks, bonds, mutual funds, annuities, insurance and trust services. U.S. Bancorp offers a comprehensive range of financial solutions through U.S. Bank, U.S. Bancorp Asset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray. For more information on U.S. Bancorp Piper Jaffray, visit www.piperjaffray.com .

SOURCE U.S. Bancorp Piper Jaffray

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding U.S. Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.



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