July remittance reports reflected higher annualized net losses and late-stage (60+ days) delinquencies but steadier early-stage (30-59 days) delinquencies across securitized prime and non-prime auto loan pools during the June collection period. Annualized net losses were 0.41% and 6.74% in KBRA’s prime and non-prime indices, respectively, rising 14 basis points (bps) and 107 bps month-over-month (MoM), and 17 bps and 170 bps year-over-year (YoY). Early-stage delinquencies fell 2 bps MoM but increased 12 bps YoY to 1.05% in the prime index and climbed 5 bps MoM and 66 bps YoY to 8.51% in the non-prime index.
Meanwhile, the percentage of prime borrowers at least 60 days past due increased 1 bp MoM and 8 bps YoY to 0.44%, while non-prime late-stage delinquencies came in at 5.22%, up 22 bps MoM and 45 bps YoY (see Figure 1 and Figure 2). Recovery rates subsided in both indices, down 6.4 percentage points (ppt) MoM and 1.1 ppts YoY to 61.5% in our prime index, and 4.6 ppts MoM and 6.4 ppts…