Marketplace Consumer Loan ABS Indices: January 2024

January remittance reports showed varied month-over-month (MoM) credit performance across Tier 1 and Tier 2 marketplace consumer loan pools during the December collection period. On one hand, annualized net losses in KBRA’s Tier 1 index climbed 27 basis points (bps) MoM and 372 bps year-over-year (YoY) to 9.31%, while delinquency rates (30+ days) increased 37 bps MoM and 64 bps YoY to 4.32%. On the other hand, net losses in our Tier 2 index declined 21 bps MoM but rose 127 bps YoY to 19.29%, while delinquencies (30+ days) landed at 7.31%, remaining unchanged MoM but rising 81 bps YoY (see Figure 1, Figure 2, and Figure 9).

With tax season around the corner, tightened underwriting standards in many KBRA-rated deals, and the expectation that the labor market will remain resilient, marketplace consumer loan pools will likely exhibit relatively stable or improving credit performance in Q1 2024.

The data shown in this report and other indices metrics can be found

About the Indices…