KBRA’s U.S. Solar Loan ABS Index showed higher annualized net losses but lower delinquencies in April. Annualized net losses increased 56 basis points (bps) month-over-month (MoM), landing at 4.49%, reversing the 41-bp improvement recorded in March. In contrast, early- (30-59 days) and late-stage (60+ days) delinquency rates declined 2 bps and 19 bps MoM, respectively.
The index has deteriorated since last year, with net losses rising 178 bps versus year-ago levels. Further, early-stage delinquencies are up 14 bps, while late-stage delinquencies increased 59 bps year-over-year (YoY). Given late-stage delinquencies remain elevated YoY, we expect charge-offs to continue to increase in the coming months with several headwinds remaining in the sector (see Residential Solar ABS: Performance Divergence Between Loan and…
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