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

Monthly Overview

KBRA’s headline Equipment Loan and Lease ABS Index showed mixed credit performance this month, with annualized net losses declining 7 basis points (bps) month-over-month (MoM), while 60+ day delinquencies moved 3 bps higher. The MoM drop in net losses was driven by KBRA’s Large Ticket sub-index falling 22 bps, but partly offset by a 19-bp increase in the Small-Medium Ticket sub-index. This divergence in net loss performance was attributable to broad-based improvements in the Large Ticket sub-index and softening across the Small-Medium Ticket pool. The more muted delinquency performance was similarly driven by diverging movements between the sub-indices, though the changes were less pronounced.

Meanwhile, year-over-year (YoY) performance has mostly weakened since last October. The headline index net loss rate increased 29 bps YoY, with both sub-indices rising in tandem. In contrast, 60+ day delinquency rates diverged between the sub-indices, resulting in only a modest…