Monthly Overview
Annualized net losses increased 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 a more pronounced 119 bps in our non-prime index. This larger MoM rise in the non-prime sector follows the cyclical patterns observed in previous years. Notably, early-stage (30-59 days) and late-stage (60+ days) delinquency metrics improved MoM in both indices. These improvements were modest in the prime index, while the non-prime index saw the early-stage metrics drop 16 bps MoM and the late-stage fall 26 bps.
On a year-over-year (YoY) basis, the prime index’s credit performance remained mostly stable, while the non-prime index showed deterioration across all metrics. The prime index experienced modest increases of 4 bps or less YoY in net losses as well as early- and late-stage delinquencies. Meanwhile, the non-prime index recorded more meaningful increases across all three key performance…