Monthly Overview
KBRA’s headline Equipment Loan and Lease ABS Index performance was mostly improved this month, with both sub-indices showing lower annualized net loss rates. Headline net losses declined 14 basis points (bps) month-over-month (MoM), driven by a 20-bp decrease in KBRA’s Large Ticket sub-index and a 7-bp improvement in the Small-Medium Ticket sub-index. Meanwhile, the headline delinquency rate (60+ days) was largely stable, rising just 3 bps month-over-month (MoM), as the two sub-indices had small, opposing movements that effectively offset one another.
The headline index and sub-indices, from a year-over-year (YoY) performance perspective, followed similar trends to the MoM movements. Net loss performance improved in the headline index, declining 19 bps YoY, while delinquencies increased 21 bps since last January. Both sub-indices contributed to the improved YoY net loss rate, with losses falling YoY in both, consistent with the MoM trend. However, 60+ day delinquency…