Overview
European auto ABS performance remained relatively stable over the past six months, with index figures from October 2024 to April 2025 showing only marginal signs of credit deterioration. Both the loan and lease ABS indices saw slight upticks in net losses and delinquencies, but these metrics are still very low in absolute terms. Annualised net losses remained contained, increasing to 0.6% from 0.5% in the loan index, while the lease index held steady at around 0.5%. These levels remain within pre-pandemic norms, reflecting healthy collateral performance. Overall, credit trends indicate a gradual normalisation from exceptional post-pandemic lows rather than any significant deterioration, as delinquencies and defaults remain low and within expectations for this asset class.
The stable credit trend is underpinned by Europe’s macroeconomic backdrop. Inflation has moderated from recent highs and unemployment remains near historic lows, supporting consumer repayment capacity.…