Monthly Overview
Annualized net losses in KBRA’s headline Equipment Loan & Lease ABS index climbed 15 basis point (bps) month-over-month (MoM) and 41 bps year-over-year (YoY) to 1.23%. The MoM increase in net losses was driven by KBRA’s Small-Medium Ticket Sub-Index, which increased 42 bps during the month, but was partially counterbalanced by a more stable 2-bp improvement in KBRA’s Large Ticket Sub-Index. The Small-Medium Ticket increase in loss rates was almost entirely driven by three deals sponsored by an office-products manufacturer’s captive finance company.
Delinquency performance in the headline index was weaker on both a MoM and YoY level, rising 14 bps and 37 bps, respectively. Both MoM and YoY increases were driven by both sub-indices, with the Large Ticket Sub-Index rising 16 bps MoM and the Small-Medium Ticket Sub-Index increasing 10 bps MoM. The MoM rise for Large Ticket mainly reflected the inclusion of two new deals that reached six months of seasoning. For…