Overview
European auto ABS performance remained broadly stable over the six months to October 2025. Across the indices, changes in key credit metrics were modest and consistent with recent trends. In the loan index, annualised net losses increased 11 basis points (bps) to 0.71%, while late-stage delinquencies (60+ days) climbed 8 bps to 0.6% over this period. The lease index, by contrast, showed slight improvement, with annualised losses declining 10 bps to 0.37% and late-stage delinquencies down 11 bps to 0.27%. Early-stage arrears (30-59 days) remained steady in both indices, with limited month-to-month volatility.
Overall, performance indicators continue to reflect stable collateral behaviour, supported by steady employment and improved household repayment capacity. Inflation has eased, and policy rates have remained broadly unchanged since midyear, helping to maintain borrower affordability. Minor compositional effects from newly seasoned transactions entering the index, and the…