Monthly Overview
KBRA’s headline Equipment Loan and Lease ABS Index posted a 14-basis point (bp) rise in annualized net losses and a 3-bp decline in 60+ day delinquencies month-over-month (MoM) in January. The MoM increase in annualized net losses was driven by KBRA’s Large Ticket Sub-Index, which climbed 53 bps during the month, but was partially counterbalanced by a 56-bp improvement in KBRA’s Small-Medium Ticket Sub-Index. Delinquency rate performance was more stable this month, with KBRA’s Small-Medium Ticket Sub-Index remaining mostly flat since last month (rising only 1 bp) while our Large Ticket Sub-Index dropped 7 bps.
Meanwhile, on a year-over-year (YoY) basis, credit metrics have weakened for the headline index and across each sub-index. The YoY rise in net losses was primarily driven by transactions with higher concentrations in trucking held within our Large Ticket Sub-Index, while most of the YoY increase in 60+ day delinquencies was driven by 2024 vintage deals held within…