July remittance reports showed relatively stable credit performance across securitized equipment loan and lease pools during the June collection period. Annualized net losses in KBRA's headline Equipment Loan & Lease index came in at 0.54%, down 11 basis points (bps) month-over-month (MoM) and up 37 bps year-over-year (YoY), while the percentage of 60+ day delinquencies fell 4 bps MoM but increased 13 bps YoY to 0.86% (see Figure 1).
In KBRA’s sub-indices, annualized net losses and 60+ day delinquencies in the Small-Medium Ticket sub-index landed at 0.71% and 1.37%, respectively, both falling 4 bps MoM, but up 46 bps and 55 bps YoY, respectively (see Figure 2). Similarly, annualized net losses in KBRA’s Large Ticket sub-index decreased 14 bps MoM, but climbed 33 bps YoY to 0.46%, while 60+ day delinquency rates dropped 3 bps MoM and 8 bps YoY to 0.59% (see Figure 3). The marginal MoM improvement in net losses in the Large Ticket sub-index reflects lower defaulted equipment…