April remittance reports showed stable annualized net loss rates but increasing delinquencies across securitized solar loan pools during the March collection period. Current index values as well as month-over-month (MoM) and year-over-year (YoY) changes are presented in the table below.
Annualized net losses fell 11 basis points (bps) MoM to 2.04%, driven by higher recovery rates across the majority of solar loan pools in April. Meanwhile, early-stage delinquency rates increased 7 bps MoM and 18 bps YoY, marking the highest level since 2017. April’s late-stage delinquency rates also increased 1 bp MoM and 13 bps YoY, representing the highest monthly rates on record when compared to April numbers from prior years (See Figure 7). Notably, prepayment rates increased for the second straight month, following seasonal trends observed in prior years. This is likely driven by borrowers prepaying their loans with solar investment tax credit or tax refunds in general. The CPR in April's index…