October remittance reports showed improved delinquency but mixed net loss performance across KBRA’s Large and Small-Medium Ticket indices during the September collection period. In KBRA’s headline Equipment Loan & Lease Index, 60+ day delinquency rates fell 17 basis points (bps) month-over-month (MoM) but remained up 63 bps year-over-year (YoY), at 1.2% (see Figure 1). Also, 60+ day delinquencies improved across both sub-indices MoM, with Large Ticket delinquencies down 15 bps MoM but up 40 bps YoY to 0.84%, while Small-Medium Ticket delinquencies were down 17 bps MoM but up 104 bps YoY to 1.82% (see Figure 2 and Figure 3).
Annualized net losses in our headline Equipment Loan & Lease Index ticked up 1 bp MoM and 44 bps YoY to 0.69%. In KBRA’s sub-indices, net loss performance diverged. Large Ticket annualized net losses moved up 27 bps MoM and 57 bps YoY to 0.68%, while our Small-Medium Ticket net loss metric declined 43 bps MoM but increased 25 bps YoY, arriving at 0.7%.
The…