U.S. Equipment Loan & Lease ABS Indices: September 2025

Monthly Overview

KBRA’s headline Equipment Loan and Lease ABS Index showed weaker credit performance in September, with annualized net losses increasing both month-over-month (MoM) and year-over-year (YoY). Net losses increased 28 basis points (bps) MoM and 12 bps YoY, landing at 1.05%. The MoM rise in net losses was driven by both of KBRA’s sub-indices, with the Large Ticket sub-index climbing 34 bps and the Small-Medium Ticket sub-index up 16 bps. The softening in net loss performance for the Large Ticket sub-index reflects its typical variability in recoveries, while the Small-Medium Ticket’s increase was mostly due to small, broad-based upticks across the pool.

Meanwhile, delinquency performance was mixed between the two sub-indices, with the 60+ day delinquency rate declining 3 bps MoM in the Small-Medium Ticket sub-index and rising 14 bps in the Large Ticket sub-index. From a YoY perspective, delinquencies for the headline index remained flat, as the opposing movements in the…