2 Small Caps of "Interest"

Group 1: Interest Rate Impact on Companies - Interest rates affect companies on both expense and revenue sides, particularly in industries reliant on debt, such as airplane leasing [1] - A decline in interest rates could allow companies to refinance debt at lower rates, reducing interest expenses and positively impacting earnings per share (EPS) [3] Group 2: Willis Lease Finance (WLFC) - WLFC's portfolio includes 337 engines, 12 aircraft, one marine vessel, and other leased equipment, servicing 74 lessees across 42 countries as of the end of 2023 [2] - WLFC has a debt load of $1.95 billion as of June 30, 2024, with$483.8 million maturing in 2025 [3] - The company acquired 15 "greener" engines for $363.9 million, which operate at 17$26.7 million in cash and minimal liabilities, providing financial flexibility for growth initiatives [9] - A gradual decline in interest rates may increase financing activity, benefiting ITIC, which has been upgraded to Outperform by Zacks based on this outlook [11]