Kroll Bond Rating Agency released its inaugural equipment loan and lease indices for April 2021. In reviewing credit trends for the sector, this new index aims to complement KBRA’s series of monthly auto, consumer loan and residential index publications.
Based on April remittance reports, credit performance remained on solid footing as of the March collection period. KBRA’s headline equipment loan and lease index posted an annualized net loss rate of 0.14% in April, down seven basis points month over month and 43 basis points year over year, while the percentage of lease payments more than 60 days past due came in at 0.55%, down 18 basis points month over month and 28 basis points year over year. Although delinquency rates and annualized net losses rose during the first few months of the COVID-19 pandemic, both metrics have recovered and are now trending at historically low levels.
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