Early-stage delinquencies (between 30 and 59 days past due) rose in both prime and subprime auto ABS pools per data reported in January, according to Kroll Bond Rating Agency.
The ratings agency reported a deliquency-rate climb of seven basis points for 30-59 day delinquencies in its KBRA Prime Auto Loan Index, while the KBRA Non-Prime Auto Loan Index rose to 7.60%, up 23 basis points from the prior month.
For late-stage delinquencies over 60 days, the prime index was unchanged at 0.39% while the non-prime index rose 19 basis points to 4.41%.
In both indices, Kroll's report stated, "delinquency metrics remained meaningfully lower on a year-over-year (YoY) basis, as government stimulus and hardship assistance programs have helped to keep many borrowers current on their loan payments.
"Similarly, annualized net loss rates continue to trend up, but remain well below pre-pandemic levels, partly driven by a strong used car market and low delinquency rates since the start of the pandemic."
Kroll also noted that net losses have been "subdued as late" as "recoveries on a large number of loans charged off early in the pandemic were delayed until later in the summer and fall."
