Deal volume picked up slightly in the first quarter of 2024, as portfolios continue to reset to current interest rate levels. While charge-offs remained higher than normal compared to pre-Covid figures, the decline in delinquencies indicate charge-offs are likely to return to more normal levels in the upcoming months. Lenders also remain optimistic that the Fed will cut rates in Q4 of this year, reversing interest rate compression on their portfolios.

The positive trends in the equipment finance industry drove an increase in ELFA’s Monthly Confidence Index, which surveys key industry executives.