Monthly Overview
KBRA’s Solar Loan ABS Index displayed mostly improved month-over-month (MoM) credit performance metrics for the July remittance period. Annualized net losses declined 16 basis points (bps) MoM, and late-stage delinquencies (60-120 days) edged down 1 bp. On the other hand, early-stage (30-59 days) delinquencies increased 4 bps MoM.
On a year-over-year (YoY) basis, the index metrics remain elevated compared to 2024 levels, with annualized net losses up 51 bps YoY and both early- and late-stage delinquencies increasing by 11 bps each. The main driver of these higher losses and delinquencies on a YoY basis has been the later 2024 vintage deals reaching their steady-state loss levels, whereas a year ago, when first introduced into the index, they exhibited initially low losses.
Current index values, as well as MoM and YoY changes, are shown in the following table. The data shown in this report and other index metrics can be found