Monthly Overview
Monthly performance in KBRA’s Prime and Non-Prime U.S. Auto Loan ABS indices displayed mostly deteriorated credit metrics. Early-stage (30–59 days) delinquencies increased in both indices, with the observed metric up 9 basis points (bps) month-over-month (MoM) in our prime index and 19 bps in our non-prime index. Similarly, late-stage (60+ days) delinquencies moved higher, up 30 bps MoM in the non-prime index and 1 bp in the prime index. Net losses were the only metric that differed between the benchmarks, with the prime index improving MoM (down 2 bps), while the non-prime index increased 31 bps.
The non-prime sector has weakened across credit metrics since last June, with both delinquency stages and net losses rising. Meanwhile, the prime index's year-over-year (YoY) performance has been more muted, with net losses stable and only single-digit increases in delinquencies.
The typical seasonal trends for the indices’ credit metrics are expected to continue in the coming…