Monthly Overview
Credit metrics across KBRA’s Prime and Non-Prime Auto Loan ABS Indices weakened in January. Early-stage (30-59 day) and late stage (60+ days) delinquency rates increased in both benchmarks, with early-stage delinquencies rising 11 basis points (bps) and 82 bps month-over-month (MoM), respectively, and late-stage delinquencies moving 3 bps and 46 bps higher. Annualized net losses also climbed across both credit segments as prime losses increased 4 bps during the month, while non-prime losses moved up 53 bps.
Auto loan delinquencies and net losses typically peak in Q1 of each year, as holiday spending strains consumer balance sheets. This trend reverses in Q2, when tax refunds provide additional cash flow for borrowers to catch up on past-due payments (see Figures 1-8).
Figures 1-14 show performance metrics over the last five to eight years. The table below presents current index values as well as MoM and YoY changes.
The data shown in this report and other indices metrics…