Monthly Overview
KBRA’s U.S. Marketplace Consumer Loan ABS Index showed mixed credit performance in August, with improvements in annualized net loss rates while delinquencies increased modestly. Net losses declined 138 basis points (bps) month-over-month (MoM), nearly reversing the 146-bp increase recorded in July. This drop in losses was driven by broad-based improvements across most deals in the index. Alternatively, 30+ day delinquency rates increased 49 bps MoM, offsetting the 43-bp decline seen in the prior month. This increase was largely attributed to younger 2024 and 2025 vintage deals beginning to reach their steady state delinquency levels.
On a year-over-year (YoY) basis, both net loss and delinquency rates improved, with net losses down 83 bps and delinquencies down 24 bps versus year-ago levels. Notably, this improvement also holds over a two-year lookback, with net losses down 201 bps and 30+ day delinquencies down 14 bps since August 2023 (see Figures 4–6).
Current index…