Annualized net losses in KBRA’s headline equipment loan and lease index fell 44 basis points (bps) month-over-month (MoM), while our Small-Medium Ticket and Large Ticket sub-indices posted MoM declines of 2 bps and 71 bps, respectively. The large MoM decline in our headline index and Large-Ticket sub-index was primarily driven by negative gross losses in a 2023 vintage transaction with a high concentration in trucking collateral, and likely related to $8.5 million in repurchases by the servicer during the month. Excluding the observed transaction, annualized net losses in KBRA’s headline and Large Ticket indices would have fallen a more modest 12 bps and 20 bps, respectively, versus the previous month.
Meanwhile, 60+ day delinquencies increased 51 bps MoM in our Small-Medium Ticket index but fell 8 bps MoM in our Large Ticket index, pushing the delinquency rate in our overall index 16 bps higher versus the previous month. The uptick in small-medium ticket delinquencies was largely…