U.S. Equipment Loan & Lease ABS Indices: August 2025

Monthly Overview

KBRA’s headline Equipment Loan and Lease ABS Index showed mostly improved credit performance in August, with annualized net losses declining both month-over-month (MoM) and year-over-year (YoY). Net losses fell 34 basis points (bps) MoM and 5 bps YoY, landing at 0.79%. The MoM decline in net losses was driven by both of KBRA’s sub-indices, with the Large Ticket sub-index falling 30 bps and the Small-Medium Ticket sub-index decreasing 39 bps. The improvement in net loss rates across the sub-indices was primarily driven by higher recoveries, with the Small-Medium Ticket sub-index seeing a 1,141-bp MoM increase in recoveries and the Large Ticket sub-index rising 2,645 bps. On a YoY basis, variability in recoveries and losses is common in both sub-indices, but it is notable that the headline index is now at its lowest net loss rate of 2025.

Meanwhile, MoM delinquency performance followed a similar trend for the headline index, with the 60+ day delinquency rate falling 6 bps…