Early- and late-stage delinquency rates in KBRA’s Prime Auto Loan ABS Index were relatively flat month-over-month (MoM), rising 2 basis points (bps) and falling 1 bp, respectively, in October. The MoM change in delinquency rates within KBRA’s Non-Prime Auto Loan ABS Index was more pronounced, with early- and late-stage delinquencies rising 45 bps and 19 bps MoM, respectively. Year-over-year (YoY) delinquency metrics were higher across both indices.
Annualized net losses in KBRA’s Prime Auto Loan ABS Index were essentially flat MoM, rising just 1 bp. Meanwhile, net loss performance in KBRA’s Non-Prime Auto Loan ABS Index showed MoM improvement, with annualized net losses falling 66 bps versus the previous month. Annualized net losses remain elevated in both indices on a YoY basis.
The table below presents current index values as well as MoM and YoY changes.
Following typical seasonal patterns, we expect annualized net loss and delinquency rates to generally trend higher across both…