KBRA’s Solar Loan ABS Index posted higher year-over-year (YoY) annualized net losses, early-stage (30-59 days) delinquencies, and late-stage delinquencies (60-120 days) during the May collection period. Prepayment rates were modestly lower month-over-month (MoM). Current index values, as well as MoM and YoY changes, are shown in the following table.
After rising for five consecutive months, solar loan prepayment speeds fell 36 basis points (bps) MoM in June. Aside from this month, solar loan prepayment rates have moved higher, in concert with RMBS prepayment rates, as lower interest rates have led to a pickup in refinancing activity. We expect solar prepayment rates to directionally track mortgage prepayment speeds for the remainder of the year, as home sales and refinancings are likely the largest drivers of solar prepays.
The data shown in this report and other index metrics can be found