The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the U.S. federal government. Operating as a government corporation, the bank finances and insures foreign purchases of U.S. goods for customers unwilling or unable to accept credit risk.
The bank’s cost and effectiveness are controversial, and, like any policy or program that tilts the market driven playing field, it creates winners and losers.
Investors should understand how the bank operates and who gets hurt and who gets helped. For example, Boeing is a winner in that Ex-Im helps foreign airlines to purchase Boeing commercial aircraft. Delta Airlines, on the other hand, believes that Ex-Im financing assistance provides foreign airlines with a competitive advantage in the acquisition of new aircraft.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA®
