Waterfall says European consumer credit delivers lower defaults, less volatility than US exposure

  • Waterfall Asset Management’s July 2026 analysis flagged European consumer credit as structurally more resilient than comparable US exposure, with lower defaults and volatility.
  • European auto ABS 30+ day arrears ran about 1.2% in May 2026 versus 5.6% for US auto-loan 90+ day delinquencies in Q1 2026.
  • EU non-performing loan ratio stood near 1.8% in late 2025, supporting the report’s view of steadier through-the-cycle performance.
  • Study tied resilience to less cyclical labor markets, broader safety nets, higher savings buffers, citing 13.6% Europe savings rate versus 7.1% US average.
  • Investment takeaway: lower performance swings can support more predictable contractual cash flows for asset-backed credit portfolios.


Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Waterfall Asset Management LLC published the original content used to generate this news brief on July 15, 2026, and is solely responsible for the information contained therein.

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