Subprime 60-plus-day delinquencies declined
to 4.28% in February, compared with 5.09% in January, according to S&P Global. Year over year, however, February subprime delinquencies were up 14% over the same month a year prior.
“Generally, delinquencies decline from January to February due to tax refunds, and this pattern played out again this
past year,” S&P wrote in its March U.S. Auto Loan ABS Tracker.
“I think the year-over-year speaks to what we’ve been calling the credit normalization,” said Amy Martin, senior director of structured finance at S&P Global. Credit performance has been good for a long time and losses have been low, particularly in prime, she added.
