June remittance reports showed mixed credit performance across securitized equipment loan and lease pools during the May collection period. Annualized net losses and 60+ day delinquencies in KBRA’s headline Equipment Loan & Lease index came in at 0.65% and 0.90%, respectively. Losses rose 2 basis points (bps) month-over-month (MoM) and 54 bps year-over-year (YoY), while 60+ day delinquencies fell 2 bps MoM but are up 23 bps YoY (see Figure 1).
Drilling down to KBRA’s sub-indices, annualized net losses in the Small-Medium Ticket sub-index posted an increase of 29 bps MoM and 49 bps YoY, coming in at 0.76%, while the percentage of borrowers at least 60 days past due declined 14 bps MoM but are up 77 bps YoY to 1.42% (see Figure 2). We note the MoM rise in annualized net losses resulted from higher charge-offs across the majority of securitizations in our Small-Medium Ticket Index. On the other hand, annualized net losses in KBRA’s Large Ticket sub-index landed at 0.59%, down 13 bps…