Monthly Overview
Annualized net losses in KBRA’s headline Equipment Loan and Lease ABS index increased 34 basis points (bps) month-over- month (MoM) and 29 bps year-over-year (YoY) to 0.98%. Most of this increase was driven by KBRA’s Large Ticket sub-index; specifically, from collateral pools with an outsized exposure to the transportation industry. While equipment ABS transactions generally tend to be well diversified by industry and equipment type, there are a few issuers that have higher concentrations in trucking. This segment has seen the greatest impacts from truck value declines and stress on the financial condition of drivers. Therefore, the impacts on the Large Ticket index tend to be primarily driven by the individual transactions that are more heavily concentrated in this industry.
Meanwhile, delinquency rates in KBRA’s headline Equipment Loan and Lease index fell 28 bps MoM but were up 12 bps YoY, landing at 1.27% in November. The MoM improvement was driven by falling…