Monthly Overview
Annualized net losses in KBRA’s headline Equipment Loan and Lease ABS index declined 39 basis points (bps) month-over-month (MoM) but was up 15 bps year-over-year (YoY) to 0.89%. The MoM drop in net losses was driven by KBRA’s Small-Medium Ticket sub-index, which fell 67 bps. This was further supported by the 20-bp improvement in KBRA’s Large Ticket sub-index, almost entirely driven by three deals sponsored by the same issuer with high concentrations of trucking collateral. Meanwhile, the Small-Medium Ticket sub-index's improvement was mostly driven by one captive finance company’s reversal of irregularly high losses last month in two deals.
Similarly, delinquency performance in the headline index improved on a MoM basis but remained weaker YoY, falling 8 bps MoM while rising 28 bps YoY. The MoM trend was driven by a modest 17-bp improvement in the Small-Medium Ticket sub-index, while the Large Ticket sub-index remained flat MoM. The improvement in the Small-Medium…