Kroll Bond Rating Agency released its equipment loan and lease indices for July 2021.

According to the indices, the equipment loan and lease securitization sector continued to display positive credit performance during the June collection period. KBRA’s headline equipment loan and 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 fell out of a defaulted status in later periods when true-up payments were made to bring the contract current. Meanwhile, the percentage of payments more than 60 days past due climbed 10 basis points month over month to 0.7%.