Monthly Overview
Annualized net losses improved in KBRA’s Prime and Non-Prime U.S. Auto Loan ABS Indices this month, declining 3 basis points (bps) month-over-month (MoM) in our prime index and 29 bps in our non-prime index, while the remaining credit metrics were mixed. Early-stage delinquencies (30–59 days) increased in both indices MoM, rising 5 bps in our prime index and 44 bps in our non-prime index. Late-stage delinquencies (60+ days) diverged, with the prime index remaining flat MoM and the non-prime index up 12 bps.
On a year-over-year (YoY) basis, the prime index’s credit performance remained mostly stable, while the non-prime index showed deterioration across all metrics. The prime index saw net losses remain flat, and late-stage delinquencies increased just 2 bps YoY. In contrast, the non-prime index experienced increases in both delinquency metrics and the net loss rate. Notably, delinquency rates in the non-prime index are now at their highest levels since the benchmark's…