Monthly Overview
KBRA’s Solar Loan ABS Index showed broadly improved credit performance in October, as both annualized net losses and early-stage (30-59 days) delinquencies declined month-over-month (MoM). Net losses fell 7 basis points (bps) MoM, while early-stage delinquencies dropped by a similar 6 bps. The late-stage (60-120 days) delinquency rate was the only credit metric that did not improve, edging up just 2 bps and remaining relatively stable overall.
On a year-over-year (YoY) basis, however, credit performance has continued to soften, with all key metrics trending higher. Net losses increased 53 bps YoY, while early- and late-stage delinquencies increased 10 bps and 21 bps, respectively. This ongoing weakening extends a nearly three-year trend of gradual deterioration, largely driven by broad-based consumer financial strain and persistently elevated borrowing costs.
Current index values, as well as MoM and YoY changes, are shown in the following table. The data shown in this…