KBRA releases ABS auto loan indices for August 2021
NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) publishes its auto loan ABS indices for August 2021.
August remittance reports showed a slowdown in credit performance in securitized auto loan pools during the July fundraising period, likely more due to seasonality than a change in fundamentals . Early stage defaults (30-59 days late) in KBRA’s Prime Auto Loan Index increased 5 basis points (bps) month-over-month (MoM) to 0.82% , while late-stage defaults (over 60 days late) increased 1bp to 0.27%. At the same time, early and late defaults on the KBRA non-prime auto loan index rose 9bp and 10bp on MoM, respectively, to 6.77% and 3.53%. Annualized Net Losses (ANL) also tend to increase in both indices from the previous month, but remained below last year’s levels as the sharp increase in the value of used vehicles this year helped to stimulate loan recoveries.
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KBRA is a full service credit rating agency registered in the US, EU and UK, and is designated to provide structured finance ratings in Canada. KBRA ratings may be used by investors for regulatory capital purposes in several jurisdictions.