November remittance reports showed a modest month-over-month (MoM) softening in credit performance across securitized solar loan pools during the October collection period, with annualized net losses and delinquency rates edging slightly higher and prepayment rates continuing their downward trend. Annualized net losses rose a modest 6 basis points (bps) MoM, to 1.28% (see Figure 1), while early- (30-59 days) and late-stage (60-119 days) delinquencies inched up 2 bps and 1 bp, respectively, coming in at 0.45% and 0.36% (see Figure 2). Looking at index performance by year, we note that annualized net losses and delinquency rates remain within their historical range on a seasonal basis (see Figures 4-6).
Solar loan prepayments have continued to trend down over 2022 and hit a record low this month,1 falling 111 bps MoM and 889 bps year-over-year (YoY) to 6.21% (see Figure 3 and Figure 7). We anticipate prepayment speeds will remain well below historical…