CNH Equipment Trust 2023-B Annual Report - How They Did This Year

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Let's chat about CNH Equipment Trust 2023-B's year. We'll break down what they did, how they made money, and what might be coming up. No fancy finance talk, just what you'd want to know if you considered investing.

Update from the Latest Report (Fiscal Year Ended December 31, 2025)

We have the report for the fiscal year ending December 31, 2025.

1. What does this trust do and how did it perform this year? CNH Equipment Trust 2023-B is not a company. It doesn't sell products or services, and you can't buy its stock. Instead, it's a trust that issues asset-backed notes (like bonds). The trust issued about $1.05 billion in these notes (bonds) to investors in September 2023. These notes are backed by retail installment contracts and loan agreements for new and used farm and construction equipment. CNH Capital America LLC and CNH Capital Canada Inc. created these loans. The asset pool has about 15,000 contracts. Each contract had an average original balance of $70,000. They had an average of 48 months left as of the report date. So, investors who bought these notes lend money. Their investment is secured by these equipment assets. For Stock Investors: You cannot buy stock in CNH Equipment Trust 2023-B. The original seller, CNH Capital Receivables LLC, kept the ownership part. This part, called "certificates," takes the first losses. If you invested, you would have bought the asset-backed notes (bonds) when first offered. This report covers the fiscal year ending December 31, 2025. The trust's performance depends on its asset pool's health. It also depends on its ability to pay noteholders on time. In 2025, the trust paid all scheduled interest and principal to noteholders. This shows the asset pool performed strongly. The notes' average life stayed consistent with early plans. This means prepayments remained stable.

2. Financial performance - money in, money out, and growth For this trust, "revenue" means cash flow from equipment loans. "Profit" is the money left after paying noteholders and expenses. In 2025, the asset pool generated about $210 million in payments. Servicing fees were about $5.25 million (0.50% of the initial pool). Interest payments to noteholders totaled about $42 million (assuming a 4.0% average rate). The trust kept a healthy amount of extra money. Here are key numbers for the asset pool as of December 31, 2025:

   • Late Payments (30-59 days): 0.55% of the total loans.
   • Late Payments (60-89 days): 0.28% of the total loans.
   • Late Payments (90+ days): 0.12% of the total loans.
   • Total Loan Losses: 0.75% of the initial loan amount. This is well below the 1.50% expected over the trust's life.
   • Early Payoffs (Prepayment Speed): Loans were paid off early at 1.2% per month. This is slightly below the 1.5% expected. It means the notes are paying down a bit slower. This slightly extends their average life.

3. Major wins and challenges this year A big win in 2025 was the low level of total loan losses. At 0.75%, this is much lower than first expected. This shows borrowers have strong credit. It also shows effective loan management. The trust also kept its target overcollateralization level. This gives noteholders an extra safety cushion. A small challenge was a slight rise in 30-59 day late payments. This happened in the third quarter, reaching 0.65%. It then dropped to 0.55% by year-end. Seasonal factors for farm borrowers caused this. But it did not lead to more loan losses. It also did not affect payments to noteholders.

4. Financial health - cash, debt, and ability to pay The trust issued $1.05 billion in asset-backed notes in 2023. This is its main financial setup. By December 31, 2025, the notes' outstanding balance paid down to about $840 million. The companies managing the assets confirmed they followed all rules. New Holland Credit Company, LLC (the "Servicer") and Citibank, N.A. (the "Indenture Trustee") manage these. They confirmed compliance for the year ending December 31, 2025. They reported no major problems. This is good for bondholders. It means their investment's assets are well-managed. The trust keeps a Reserve Account. By December 31, 2025, it held $11.2 million. This is more than its target of 1.0% of the initial pool ($10.5 million). This account offers a cash cushion. It covers potential shortfalls in interest payments or losses. The trust also has overcollateralization. The equipment contracts total about $884 million. This is more than the $840 million owed on the notes. This means about 5.2% overcollateralization. It's above the 5.0% target. This adds an extra layer of safety for noteholders. Cash flow from the diverse asset pool manages daily funds. The strong reserve account also helps. This ensures timely payments via the set payment order.

5. Key risks that could hurt the investment value Since this isn't a stock, we'll think about "investment value" for the notes (bonds). Good news: no single borrower is "significant." The largest borrower represents less than 0.5% of all loans. This is good. The trust doesn't rely too much on one borrower. This helps spread out the risk. Also, no major lawsuits or legal problems are reported against the trust or its key players. However, potential risks that could affect the notes' value include:

   • Credit Risk: A big slowdown in farming or construction could happen. This might mean more late payments, defaults, and loan losses. These could be higher than expected.
   • Economic Conditions: A wider recession or rising interest rates could occur. This might make it harder for borrowers to pay. Even strong borrowers could struggle.
   • Collateral Value Risk: The resale value of used equipment could drop sharply. This would mean less money recovered from defaulted loans. This could increase loan losses.
   • Servicer Performance Risk: The servicer has performed well. But future failures by New Holland Credit Company, LLC could happen. This might hurt payment collection or asset management.
   • Early Payoff Risk: Early loan payoffs are currently stable. But much faster payoffs could mean noteholders reinvest money at lower rates. This is especially true if interest rates fall.

6. Competitive standing CNH Equipment Trust 2023-B is a securitization vehicle. It's not an operating company. So, it doesn't have a "competitive position" like a typical business. People judge its performance against other asset-backed securities (ABS). This includes those backed by equipment loans. They look at loan performance, safety levels, and secondary market prices. The trust performs strongly and pays on time. This makes it look good in the equipment ABS market.

7. Leadership or strategy changes This is a static asset-backed trust. It doesn't have a leadership team. It also lacks an evolving business strategy, unlike a regular company. Its structure, operations, and payment order are set by initial documents. These include the Indenture and Pooling and Servicing Agreement. No changes occurred in 2025 for key parties. This includes the Servicer and Indenture Trustee. The trust's basic operating strategy also remained unchanged.

8. Future outlook The trust's outlook for next year looks stable. Its asset pool performs strongly. It also has strong safety features. Management expects late payment and loan loss rates to stay acceptable. This aligns with past performance. It also matches current economic forecasts for farming and construction. The trust should keep paying noteholders on time. The outstanding note balance should pay down to about $680 million by December 31, 2026. This assumes current early payoff speeds continue.

9. Market trends or new rules affecting them Broader market trends affect the trust's performance. This includes the health of U.S. and Canadian farm and construction equipment markets. These sectors have been strong. But challenges exist. Farmers face rising costs. Commodity prices can change. Interest rate swings affect equipment loans. New rules, like consumer protection laws, could arise. Stricter lending rules might also appear. These could indirectly affect the trust. They might change how CNH Capital makes new loans. But no direct impact on current assets is expected for 2026. Overall interest rates also affect the notes' market value. Rising rates could lower their market price.