Consumer Credit Defaults Up Slightly According To The S&P/Experian Consumer Credit Default Indices

Dienstag, 20.09.2016 16:25 von

PR Newswire

NEW YORK, Sept. 20, 2016 /PRNewswire/ -- Data through August 2016, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed small increases in numerous default rates.  The composite rate was 0.85% in August, up two basis points from the previous month. The first mortgage default rate reported 0.68% for August, up two basis points from the prior month. Auto loan defaults recorded a 1.01% default rate, up eight basis points from July. The bank card default rate was the only decrease in August at 2.86%, down six basis points from last month.

The five major cities reported mixed results in August with three cities showing higher default rates.  New York reported 0.91% for August, rising 14 basis points from July's 0.77%. Dallas's default rate increased five basis points from the prior month to 0.74%. Chicago also saw its default rate increase, up four basis points, to 0.93%. Los Angeles reported a default rate of 0.60%, a decrease of three basis points. Miami reported a decrease, the first since February 2016, of 16 basis points at 1.21%.      

"Despite small monthly movements in consumer credit defaults, the overall default rates are stable and close to the lowest levels since shortly before the financial crisis," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "Bank card default rates are more volatile and slightly higher than those tracking mortgages or auto loans.  Compared to a year earlier, auto and bank card defaults rose 11 and 15 basis points, respectively; mortgage loan defaults are 16 basis points lower. The overall consumer credit picture gives little reason to be concerned about default rates.

"Related data published by the Federal Reserve show that the growth in consumer and household debt is currently about 4.4% per year, increasing about two percentage points faster than nominal GDP growth. Consumer credit – bank cards and auto loans – grew before, during, and after the recent recession and is currently at an all-time high. Mortgage debt peaked in the first quarter of 2008 and reached its most recent low point in the first quarter of 2015. It is now up 2.1% from the low. Barring a repeat of the recent and severe recession, both consumer credit and mortgage debt outstanding are expected to continue growing at, or faster than, the pace of nominal GDP growth."

The table below summarizes the August 2016 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

S&P/Experian Consumer Credit Default Indices


National Indices


 Index

August 2016
Index Level

July 2016
Index Level

August 2015
Index Level



Composite

0.85

0.83

0.96


First Mortgage

0.68

0.66

0.84


Second Mortgage

0.52

0.44

0.57


Bank Card

2.86

2.92

2.71


Auto Loans

1.01

0.93

0.90


Source: S&P/Experian Consumer Credit Default Indices



Data through August 2016









The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:

Metropolitan     

Statistical Area

August 2016
Index Level

July 2016
Index Level

August 2015
Index Level



New York

0.91

0.77

1.04


Chicago

0.93

0.89

1.21


Dallas

0.74

0.69

0.71


Los Angeles

0.60

0.63

0.76


Miami

1.21

1.37

1.46


Source: S&P/Experian Consumer Credit Default Indices



Data through August 2016




For more information about S&P Dow Jones Indices, please visit www.spdji.com.

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than based on any other provider in the world. With over 1,000,000 indices and more than 120 years of experience constructing innovative and transparent solutions, S&P Dow Jones Indices defines the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spdji.com.

About Experian

We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score and protect against identity theft. In 2015, we were named one of the "World's Most Innovative Companies" by Forbes magazine.

We employ approximately 17,000 people in 37 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2016, was US$4.6 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, "Inside Experian."

Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

FOR MORE INFORMATION:

David Blitzer
Managing Director and Chairman of Index Committee
New York, USA
(+1) 212 438 3907
david.blitzer@spglobal.com

Soogyung Jordan
Global Head of Communications
New York, USA
(+1) 212 438 2297
soogyung.jordan@spglobal.com

Matt Tatham
Experian Public Relations
917 446 7227
matt.tatham@experian.com

Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 am ET. They are constructed to track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien. The Indices are calculated based on data extracted from Experian's consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month. Experian's base of data contributors includes leading banks and mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

For more information, please visit: www.consumercreditindices.standardandpoors.com.

 

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SOURCE S&P Dow Jones Indices