Monthly Overview
KBRA’s headline Equipment Loan and Lease ABS Index showed mixed performance this month, with both sub-indices recording improved net loss metrics but rising 60+ delinquency rates. Headline annualized net losses dropped 25 basis points (bps) month-over-month (MoM), mostly driven by KBRA’s Large Ticket sub-index having net losses fall 39 bps. In contrast, headline delinquencies increased 9 bps, driven by similarly sized increases in both sub-indices, as the Small-Medium Ticket moved 9 bps higher and the Large Ticket was up 10 bps.
Meanwhile, year-over-year (YoY) performance has softened since 2024, with both delinquencies and losses rising in the headline index. The headline index net loss rate increased 11 bps YoY, with the Large Ticket up 55 bps, but partially offset by the Small-Medium Ticket dropping 67 bps YoY. Meanwhile, 60+ day delinquency rates increased across both sub-indices, contributing to an 18-bp increase YoY for the headline index.
Current index values as…