Monthly Overview
Annualized net losses in KBRA’s headline Equipment Loan and Lease ABS Index increased 3 basis points (bps) month-over-month (MoM) and 33 bps year-over-year (YoY) to 0.94% in December. Most of this month’s rise was driven by KBRA’s Small-Medium Ticket Sub-Index, which increased 87 bps MoM and 56 bps YoY, while KBRA’s Large Ticket Sub-Index saw a 49-bp improvement MoM but a 23-bp increase versus year-ago levels.
Meanwhile, 60+ day delinquencies in KBRA’s headline Equipment Loan and Lease ABS Index moved 12 bps higher MoM and 41 bps YoY, landing at 1.40% in December. This increase mainly reflected our Small-Medium Ticket Sub-Index. The MoM increases in both annualized net losses and delinquencies in the Small-Medium Ticket Sub-Index were primarily driven by a few 2024 vintage transactions that were new to the index for the month, as they reached six months of seasoning. These transactions included equipment at the lower end of the small ticket equipment cost range…