August remittance reports showed mixed credit performance across securitized equipment loan and lease pools during the July collection period. KBRA’s headline Equipment Loan & Lease index posted a rise in annualized net losses of 15 basis points (bps) month-over-month (MoM) and 60 bps year-over-year (YoY), coming in at 0.69%, while the 60+ day delinquency rate remained unchanged MoM and increased 34 bps YoY to 0.86% (see Figure 1).
Annualized net losses increased in both our Small-Medium and Large Ticket sub-indices. The metric increased 14 bps MoM and 73 bps YoY to 0.84% in the Small-Medium Ticket sub-index, and 15 bps MoM and 53 bps YoY to 0.60% in the Large Ticket sub-index. Meanwhile, 60+ day delinquencies in our Small-Medium Ticket sub-index declined 17 bps MoM but increased 52 bps YoY to 1.20%, while Large Ticket delinquency rates (60+ day) moved up 7 bps MoM and 26 bps YoY to 0.66% (see Figure 2 and Figure 3). The MoM upswing in net losses across both sub-indices was…