April remittance reports showed improved month-over-month (MoM) credit performance in our Small-Medium Ticket Sub-Index but weaker performance (MoM) in our Large Ticket Sub-Index. Current index values as well as MoM and year-over-year (YoY) changes are presented in the table below.
The sharp rise in annualized net losses within our Large Ticket Index was primarily driven by higher charge-offs and lower recoveries in three transactions with concentrations in trucking collateral. Gross losses and repossessions in these transactions have been volatile, reflecting stress in the transportation industry. The servicer of these transactions will lag sales of repossessed inventory in an effort to maximize recovery proceeds and not flood the resale market. As a result, recoveries could increase and net losses decline over time in these three transactions as the repossessed inventory is eventually sold.
The data shown in this report and other indices metrics can be found