Outside of a slight 2-basis point (bp) month-over-month (MoM) improvement in prime annualized net losses, credit metrics weakened among securitized auto loan pools based on September remittance report data, which reflects August loan collection activity. KBRA’s prime annualized net losses increased 13 bps year-over-year (YoY) to 0.46%, while our non-prime loss measure came in at 9.02%, rising 82 bps MoM and 19 bps YoY. Meanwhile, the percentage of receivables 60+ days past due increased for the fifth consecutive month across both indices, in line with seasonal trends. The tracked metric increased 4 bps MoM and 9 bps YoY to 0.51% in our prime index and climbed 13 bps MoM and 53 bps YoY to 5.75% in our non-prime index (see Figure 1 and Figure 2).
With used vehicle prices ticking up since August , recovery rates rebounded in both indices, up 611 bps MoM to 56.1% in our prime index, and 32 bps MoM to 38.1% in the non-prime index (see Figure 9 and Figure 10). Considering a prolonged and…