Monthly Overview
Annualized net losses improved 17 basis points (bps) and 21 bps month-over-month (MoM) in KBRA’s Prime and Non-Prime U.S. Auto Loan ABS indices, respectively. Early-stage (30-59 days) delinquency performance diverged across indices, with the observed metric falling 10 bps MoM in our prime index but rising 57 bps in our non-prime index. Late-stage (60+ days) delinquencies held steady MoM in our prime index but climbed 28 bps MoM in the non-prime index.
Net loss and delinquency rates moved higher year-over-year (YoY), with these metrics rising 3 bps to 6 bps YoY in our prime index and 58 bps to 83 bps YoY in the non-prime sector. However, annualized net loss and delinquency rates have generally stabilized since mid-2024 and are currently rising at a slower pace relative to 2022 and 2023 (see Figure 1 and Figure 2).
Consistent with seasonal trends, net loss and delinquency rates will likely trend higher in the coming months, as the tailwinds from tax refunds dissipate, and…