The equipment leasing sector has had a rough go of it for more than a year now, as a few high-profile lenders have struggled publicly and headlines have cast gloomy shadows on the sector.

The domino effect has hit nearly every lender in one form or another. For example, responding to industry concerns, some banks have lowered their advance rates, causing an equipment company to take on additional cash collateral quite suddenly. The lower discount has caused several companies to become cash strapped and no longer able to originate business. Other issues include the pressure to have "warm" back-up servicers in place, as well as the subtle but ever-present push to break issuers into the mainstream of asset-backed securitization. In short, it's been a long, strange trip for equipment leasing this year.

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