Losses on the portfolios backing all auto loan securitizations tracked by Standard & Poor’s in the U.S. rose in October to the highest monthly level since January.
The figure hit 2.29%, from 2.04% in September.
Within the segment of subprime, losses totaled 6.65% in October, up from 5.66% in September. Losses this steep have not been posted in the subprime sector since March 2010, S&P said. The agency added that subprime typically is made up of borrowers with FICOs below 620. The segment is generally expected to rack up cumulative losses of at least 7.5%.
In the prime segment, the loss rate did not budge from September, staying at 0.40%. Still, it was higher than the 0.33% average loss rate for 2013 through October.
Over the longer-term, changes in loss levels have moved in tandem between prime and subprime sectors.
While losses rose overall, recovery rates also edged up, reaching 54.15% in October from 50.47% the month before. Between the two months, overall delinquencies remained nearly the same, edging a hair down to 1.26% from 1.27%.
Transunion reported Monday its forecast of a rise in delinquency rates among auto lenders.