Monthly Overview
KBRA’s U.S. Marketplace Consumer Loan ABS Index displayed improved annualized net loss performance this month, while the 30+ day delinquency rate weakened slightly. Net losses decreased 23 basis points (bps) month-over-month (MoM), driven by broad-based improvements in seasoned deals (pre-2024 vintages) and increased loss stabilization in 2024-25 vintage deals. Meanwhile, delinquencies jumped 10 bps MoM, primarily due to younger deals that previously showed low delinquency levels but are now beginning to see loans roll into the 30+ day delinquency bucket.
The index’s performance has improved since last year, with credit trend metrics down year-over-year (YoY) for both delinquencies (decreased 89 bps) and net losses (278 bps). Although short-term credit trends have shown some volatility, the index has exhibited a clearly improving performance trajectory over the past two years (see Figures 1-6), aligning with a tightening of underwriting standards among large index…