June remittance reports showed weaker month-over-month (MoM) credit performance across KBRA’s prime and non-prime indices during the May collection period. This is well in line with seasonal patterns as increased summer spending begins to weigh more heavily on consumer budgets. Current index values as well as MoM and year-over-year (YoY) changes are shown in the following table.
The data shown in this report and other indices metrics can be found here.
Annualized net loss rates for non-prime borrowers increased 185 basis points YoY and reached their highest July level in seven years (see Figure 4). With used vehicle prices trending down 12%1 YoY, prime and non-prime recoveries decreased approximately 9-10 percentage points YoY, remaining near the low end of historical levels (see Figure 9 and Figure 10). We expect recoveries to remain…