May remittance reports showed a month-over-month (MoM) improvement in annualized net losses across both KBRA’s Prime and Non-Prime Auto Loan ABS indices. Meanwhile, delinquency rates remained relatively steady in our prime index but increased in the non-prime index, as the seasonal tailwinds created by tax refunds have started to dissipate, and increased seasonal spending is beginning to strain budgets. Current index values as well as MoM and year-over-year (YoY) changes are shown in the table below.
The data shown in this report and other indices metrics can be found here.
Although prime and non-prime recovery rates have generally increased over the past four months following seasonal trends, they are down meaningfully on a YoY basis and remain near the low end of historical levels (see Figure 9 and Figure 10). As discussed in the