As the situation at bankrupt equipment finance company DVI Inc. worsened last week following the release of the August servicing report, investors were ironically growing more comfortable with the name - bidding improved, with buyers outnumbering sellers, sources said. Collateral performance, meanwhile, took an expected turn for the worse with 30-day delinquencies spiking to nearly 30%, versus historical averages between 5.5% and 8%.
After a one-month delay, DVI released its September (August period) servicing reports for the nine transactions currently in question (see ASR 9/29). For DVI's series 2002-1 transaction, 30-day delinquencies jumped to 23.17%, up from 5.77% the previous reporting period. Delinquencies for series 2001-2, meanwhile, were reported at 20.27%, up from 6.04% the previous reporting period.