U.S. Marketplace Consumer Loan ABS Index: April 2025

Monthly Overview

April’s remittance reports showed a sharp reversal of the credit performance improvement seen last month in our U.S. Marketplace Consumer Loan ABS Index. Annualized net loss and 30+ day delinquency rates increased 351 basis points (bps) and 17 bps month-over-month (MoM), respectively, nearly erasing the declines observed in March. Conversely, both credit metrics improved compared to year-over-year (YoY) levels, with net losses down 45 bps to 15.32% and delinquency rates falling 3 bps to 5.93%.

Multiple factors contributed to this monthly trend reversal. Firstly, the shorter day count during the February collection period (March remittance) likely pushed some February loan charge-offs into March collections (April remittance), leading to higher net losses this month. In addition, last month’s improvements were partially driven by artificial effects in the redemption of several weaker-performing deals, which reported these repurchases as negative charge-offs. Lastly, the…