February remittance reports showed slightly weaker credit performance across securitized equipment loan and lease ABS collateral pools during the January collection period. In KBRA’s headline Equipment Loan & Lease Index, the percentage of obligors 60+ days past due came in at 1.14%, up 9 basis points (bps) month-over-month (MoM) and 27 bps year-over-year (YoY) (see Figure 1). Meanwhile, 60+ day delinquencies in our Small-Medium Ticket sub-index were unchanged MoM but climbed 8 bps YoY to 1.41% (see Figure 2), while delinquencies in our Large Ticket sub-index increased 13 bps MoM and 38 bps YoY to 0.96% (see Figure 3).
KBRA’s headline Equipment Loan & Lease Index posted an annualized net loss rate of 0.83% for the month, increasing 22 bps MoM and 40 bps YoY (see Figure 1). Small-Medium Ticket annualized net losses climbed 33 bps MoM and 90 bps YoY to 1.22% (see Figure 2), while Large Ticket net losses ticked up to 0.58%, up 13 bps MoM and 7 bps YoY (see Figure 3).
The data shown…