Easy Money

The following is excerpted from an address delivered by GE Capital’s Kevin M. Kennedy before the Connecticut Maritime Association on September 28, 1995.

It is not often that bankers are asked to address maritime groups, and there is a good reason for this – we are far too boring. We are accused of being a rather unimaginative lot, constantly getting stuck on details and losing sight of the forest for the trees.

In the shipping field, this is especially true. We are constantly annoying shipowners -men and women of vision – with petty questions like: “If this vessel’s earnings averaged $8,000/day over the past five years, why do you believe it will average $16,000/day for the next ten?” Or, “Is the National Shipping Company of Botswana a good name to have on an eight-year charter?” Or, “How can you operate this ship at $1,700/day when the industry standard is $4,500?” Yes, we do sometimes lack imagination.

However, I will try to fight this stereotype the only ways I can think of: I will avoid the use of statistics where possible, and I will endeavor to be brief.

This is only an excerpt of Easy Money

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