Marketplace Consumer Loan ABS Indices: December 2023

December remittance reports showed mixed month-over-month (MoM) credit performance across securitized marketplace consumer loan pools during the November collection period. In KBRA’s Tier 1 index, annualized net losses fell 4 basis points (bps) MoM but rose 155 bps year-over-year (YoY) to 9.04%, while 30+ day delinquencies were down 9 bps MoM but up 61 bps YoY, landing at 3.95% (see Figure 1 and Figure 2). However, annualized net losses in KBRA’s Tier 2 index came in at 19.49%, up 45 bps MoM and 287 bps YoY, while the percentage of borrowers 30+ days past due climbed 5 bps MoM and 97 bps YoY to 7.31% (see Figure 1 and Figure 2).

As long as the labor market remains relatively tight, credit performance should be mostly range bound or improve slightly in 2024, as many of the originators we rate have tightened their underwriting standards to varying degrees over the past year.

The data shown in this report and other indices metrics can be found

About the Indices

KBRA calculates the index…