Monthly Overview
January’s monthly remittance reports showed modest softening in performance for the aggregated ABS pool this collection period. Annualized net losses in KBRA’s Solar Loan ABS Index increased 23 basis points (bps) month-over-month (MoM) to 2.58%, reaching its highest loss level since the index’s inception (see Figure 5). Along similar lines, late-stage (60-120 days) delinquencies climbed another 4 bps MoM, reaching another all-time high for the index (see Figure 7). Meanwhile, the early-stage (30-59 days) delinquency rate was the only metric to improve, falling 4 bps MoM. Notably, early-stage delinquencies are also generally elevated compared to previous index years (see Figure 6).
Index performance has also deteriorated on a year-over-year (YoY) basis, with net losses up 64 bps as well as early- and late-stage delinquencies up 26 bps and 22 bps, respectively (see Figure 1 and Figure 2).
Current index values, as well as MoM and YoY changes, are shown in the following…