This paper develops a model for the unified valuation of all forms of real asset financing, such as bank
loans, leases, securitization vehicles, and credit guarantees, secured by assets that generate a stochastic
service flow to the operator, or a rental stream to the lessor, and depreciate over a finite economic life to
their scrap value. Examples include mobile equipment, such as aircraft, railroad equipment, ships, trucks
and trailers, as well as energy generation assets, heavy factory equipment and construction equipment. In
the event of obligor default, after a repossession delay and incurring costs of repossession, maintenance,
re-marketing and re-deployment, the lender repossesses the asset and sells it on the secondary market
and is, thus, subject to the risk of decline in the market value of the asset.