Monthly Overview
January remittance reports showed softened performance across securitized marketplace consumer loan ABS pools. Net losses and 30+ day delinquencies increased 109 basis points (bps) and 41 bps month-over-month (MoM), respectively. The rise was mainly driven by certain 2024 vintage deals ramping up to their steady state loss and delinquency levels.
That said, both credit metrics improved over year-ago levels with annualized net losses dropping 150 bps year-over-year (YoY) to 15.72%, and delinquency rates falling 41 bps to 6.29%. Notably, while there is YoY improvement in both metrics, they are still significantly elevated compared to the years prior to 2023 (see Figures 1-6).
Current index values as well as MoM and YoY changes are presented in the table below.
Starting last month, KBRA combined the previously tracked Tier 1 and Tier 2 U.S. Marketplace Consumer Loan ABS Indices into this single index, now providing consolidated performance for all outstanding securitized…