September remittance reports showed mostly weaker credit performance across securitized equipment loan and lease pools during the August collection period. Annualized net losses in KBRA’s headline Equipment Loan & Lease Index remained unchanged month-over-month (MoM) but increased 49 basis points (bps) year-over-year (YoY) to 0.68%, while 60+ day delinquency rates were 1.36%, up 50 bps MoM and 67 bps YoY (see Figure 1).
Annualized net loss performance was mixed in KBRA’s sub-indices. Large Ticket annualized net losses improved 20 bps MoM but climbed 28 bps YoY to 0.41% (see Figure 2). Meanwhile, Small-Medium Ticket annualized net losses moved up 31 bps MoM and 85 bps YoY to 1.14% (see Figure 3). Also, 60+ day delinquencies were up 78 bps MoM and 108 bps YoY to 1.98% for Small-Medium Ticket, and up 33 bps MoM and 43 bps YoY to 0.99% for Large Ticket. The increased delinquencies in both sub-indices were primarily driven by a small number of obligor delinquencies. The Large Ticket…