December remittance reports showed generally worse annualized net loss and delinquency performance but higher recoveries across securitized prime and non-prime auto loan pools during the November collection period. Prime annualized net losses came in at 0.63%, up 11 basis points (bps) month-over-month (MoM) and 24 bps year-over-year (YoY), while non-prime net losses were down 82 bps MoM but up 124 bps YoY, at 9.24%. The percentage of prime borrowers at least 60 days past due arrived at 0.54%, rising 4 bps MoM and 10 bps YoY, while non-prime 60+ day delinquency rates were 5.87%, reflecting an increase of 26 bps MoM and 39 bps YoY (see Figure 1 and Figure 2). Recovery rates inched higher during the collection period, with prime recoveries up 28 bps MoM but down 91 bps YoY to 49.38%, while non-prime recovery rates increased 165 bps MoM but fell 443 bps YoY to 36.14% (see Figure 9 and Figure 10).
On a seasonally adjusted basis, auto loan credit performance should generally continue to…