Monthly Overview
Annualized net losses (ANL) decreased in KBRA’s Prime and Non-Prime U.S. Auto Loan ABS Indices this month, by 3 basis points (bps) month-over-month (MoM) in our prime index and 36 bps in our non-prime index. By contrast, early-stage (30-59 days) and late-stage (60+ days) delinquency metrics increased MoM in both indices. The deterioration was more muted in the prime index, with both delinquency buckets increasing by 5 bps or less, while the non-prime index saw the early-stage bucket move higher by 38 bps MoM and the late-stage advance by 59 bps.
On a year-over-year (YoY) basis, both indices’ performance has deteriorated, with increases across all three credit metrics. The prime index recorded its most meaningful YoY increase in the early-stage bucket, which increased 12 bps, while the non-prime index saw all three metrics—net losses, early-stage, and late-stage delinquencies—move higher by more than 100 bps. Notably, early- and late-stage delinquency rates in the…