NEW YORK -

While some overall metrics in the U.S. auto loan asset-backed securities (ABS) sector demonstrated seasonality, S&P Global Ratings also spotted some improvements in recoveries for both prime and subprime.

According to its latest report, U.S. Auto Loan ABS Tracker: August 2019, analysts noticed prime recoveries improved to 58.99% in August from 58.50% in July and from 58.32% in August of last year. S&P Global Ratings determined subprime recoveries increased to 42.78% in August from 42.25% in July and from 41.05% last August.

The upbeat movements for recoveries countered collateral performance demonstrating seasonal weakness in August, and subprime delinquencies reaching their highest August level since 2009.

Analysts reported U.S. prime credit net losses increased by 3 basis points both month-over-month and year-over-year to land at 0.58% in August. Subprime losses jumped 57 basis points month-over-month to come in at 8.78% in August. The reading also represented a rise of 13 basis points from August of last year.

After netting out three deep subprime issuers, S&P Global Ratings explained that modified subprime losses increased by a smaller amount — 27 basis points month-over-month to register at 6.64% in August. On an annual basis, analysts pointed out the modified index improved year-over-year from 6.92% in August 2018 and stood at the lowest August level since August 2015.

S&P Global Ratings went on to mention the prime 60-plus-day delinquency rate remained nearly stable at 0.42% in August compared with 0.41% in July and 0.40% in August of last year.

The subprime 60-plus day delinquency rate remained stable at 5.25% in August compared to last month, whereas it increased from 5.02% in August 2018.

“This is the highest August level since 2009, and we believe it is due largely to the greater concentration of deep subprime loans being securitized,” analysts said in a news release.

On a modified basis, after netting out three deep subprime finance companies, S&P Global Ratings added that the subprime modified 60-plus day delinquency rate increased to 3.82% in August from 3.75% in July and 3.48% in August of last year.