Monthly Overview
KBRA’s Prime and Non-Prime Auto Loan ABS Indices showed mostly improving credit performance in December. Early-stage (30-59 day) delinquency rates in our Prime and Non-Prime Indices fell 4 basis points (bps) and 24 basis points (bps) month-over-month (MoM), respectively, while annualized net losses were down 3 bps and 60 bps MoM. Only late-stage (60+ day) delinquency rates did not improve versus the previous month, but they were essentially stable across the indices, each only rising 1 bp. Meanwhile, early- and late-stage delinquency rates, as well as net losses, remained higher across both indices on a year-over-year (YoY) basis.
Given that the holiday season has passed, we expect net loss and delinquency rates to fall in both our Prime and Non-Prime Indices over the next few months as borrowers begin to receive tax refunds, providing an extra source of cash to catch up on or avoid falling behind on payments.
Figures 1-14 show performance metrics over the last five to…