April remittance reports showed mixed credit performance across securitized equipment loan and lease pools during the March collection period. KBRA’s headline Equipment Loan & Lease index posted annualized net losses of 0.60%, improving 2 basis points (bps) month-over-month (MoM) but rising 57 bps year-over-year (YoY). Meanwhile, the percentage of obligors that were 60+ days past due reached 1.05%, up 16 bps MoM (the fifth consecutive monthly increase) and 60 bps YoY (see Figure 1).
Annualized net losses in our Small-Medium Ticket sub-index landed at 0.52% in April, down 48 bps MoM but up 66 bps versus a year ago (see Figure 2). The MoM decline in net losses in our Small-Medium Ticket sub-index was driven by a handful of late 2021 and early 2022 deals which experienced lower charge-offs and higher recoveries during the month. In contrast, annualized net losses in our Large Ticket sub-index climbed 29 bps MoM and 51 bps YoY to 0.65% (see Figure 3). The rise in net losses in our…