KBRA Releases Equipment Loan & Lease Indices for July 2021

Kroll Bond Rating Agency (KBRA) releases its Equipment Loan & Lease indices for July 2021.

The equipment loan and lease securitization sector continued to display positive credit performance during the June collection period. KBRA’s headline Equipment Loan & Lease Index posted a negative annualized net loss rate for the second time this year, as recoveries outpaced charge-offs during the month. The negative value reflects the impact of recoveries in the form of liquidation proceeds of equipment as well as a meaningful level of “cured defaults.” Cured defaults represent contracts that have aged into technical default in prior periods but then fall out of a defaulted status in later periods when true-up payments are made to bring the contract current. Meanwhile, the percentage of payments 60+ days past due climbed 10 basis points month-over-month to 0.70% but remained near post-crisis lows.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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