June remittance reports showed continued weaker year-over-year (YoY) credit performance across securitized prime and non-prime auto loan pools during the May collection period, while month-over-month (MoM) performance largely followed seasonal trends. KBRA’s prime auto loan index posted annualized net losses of 0.26%, down 6 basis points (bps) MoM and up 14 bps YoY, while the percentage of prime borrowers 60+ days past due came in at 0.39%, rising 1 bp MoM and 7 bps YoY (see Figure 1). Annualized net losses in KBRA’s non-prime index increased 2 bps MoM and 197 bps YoY, hitting 5.88%, while non-prime 60+ day delinquency rates moved up 46 bps MoM and 61 bps YoY to 5.17% (see Figure 2).
Recovery rates were varied across both indices, as prime recoveries climbed 5.4 percentage points (ppt) MoM but fell 5 ppts YoY to 61.5%, while non-prime recoveries decreased 0.4 ppts MoM and 10 bps YoY to 49.9% (see Figure 9 and Figure 10).
Securitized prime and non-prime auto loan credit performance…