Consumer Credit Default Rates Decreased Further in April 2012 According to the S&P/Experian Credit Default Indices

NEW YORK, May 15, 2012 /PRNewswire/ -- Data through April 2012, released today by S&P Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults showed that, with the exception of bank cards, all loan types saw a decrease in default rates for the fourth consecutive month. In addition, the four that did decrease posted their lowest rates since at least the end of the recent economic crisis. The national composite declined to 1.86% in April from its 1.96% March rate. The first mortgage default rate decreased from March's 1.88% to April's 1.76%. The second mortgage default rate also declined from 1.03% in March to 0.93% in April. Auto loans default rate hit its lowest in its eight year history -- 1.07% in April down from March's 1.11%. Bank card was the only loan type where default rates increased marginally in April, to 4.49% from its 4.47% March level.

"April data show the continuation of the positive trend we saw in the first quarter of 2012," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices. "Not only have we continued the general downward trend in consumer default rates that began in the spring of 2009, but we appear to be reaching new lows across many of the loan types. The first four months of 2012 show broad based declines in default rates with first and second mortgage, auto and composite default rates all reaching new post-recession lows.

"The first mortgage default rate fell by 12 basis points in April over March and is the lowest rate since July 2007.  The second mortgage rate also fell during the month, by 10 basis points, and is at a seven-plus year low.  The auto loans default rate hits its lowest rate in our history of these data.  While the bank card rate rose, it was not by much and is still close to the recent low reported in February.

"Four of the five cities we cover saw their default rates drop, with all four at post-recession lows.  For the fourth consecutive month, Chicago saw a decline, moving from 2.84% back in December 2011 to 2.21% in April.  That's a 0.63 percentage point decline and a new low. New York and Miami both fell for the third consecutive month. New York dropped almost a quarter percentage point over the month, from 2.01% in March to 1.78% in April. Miami decreased by almost a half a percentage point, from March's 3.62% to April's 3.14%.  While still the highest default rate, Miami hit a post-recession low.  Dallas hits its lowest rate in its eight years of history, moving from 1.44% in March to 1.25% in April and retains the lowest rate among the five cities we follow. Los Angeles is the only city where default rates remained flat, at 1.88%."

The table below summarizes the April 2012 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

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

About S&P Indices
S&P Indices, a leading brand of the McGraw-Hill Companies (NYSE: MHP), maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.45 trillion is directly indexed to our indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit: www.standardandpoors.com/indices.

It is not possible to invest directly in an index. S&P Indices does not sponsor, endorse, sell, or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses. S&P Indices receives compensation in connection with licensing its indices to third parties.

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.

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 31 April 2011 was $4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil.

For more information, visit http://www.experianplc.com.

Experian and the Experian marks used herein are service marks 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:
Dave Guarino
Communications
S&P Indices
[email protected]
212-438-1471

David Blitzer
Managing Director and Chairman of the Index Committee
S&P Indices
[email protected]
212-438-3907

Susan Henson
Experian Public Relations
[email protected]
714-830-5129

Jointly developed by S&P Indices 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 accurately 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.

This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses.  S&P Indices receives compensation in connection with licensing its indices to third parties.

All information provided by S&P Indices is impersonal and not tailored to the needs of any person, entity or group of persons.  S&P Indices, its affiliates and its third party licensors do not sponsor, endorse, sell, promote or manage any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of any S&P Indices' index. S&P Indices and its third party licensors are not investment advisors, and S&P Indices, its affiliates and its third party licensors make no representation regarding the advisability of investing in any such investment fund or other vehicle.  A decision to invest in any such investment fund or other vehicle should not be made in reliance on any of the statements set forth in this presentation. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other vehicle. Inclusion of a security within an index is not a recommendation by S&P Indices or its third party licensors to buy, sell, or hold such security, nor is it considered to be investment advice. Exposure to an asset class is available through investable instruments based on an index. It is not possible to invest directly in an index. There is no assurance that investment products based on the index will accurately track index performance or provide positive investment returns.

S&P Indices and its third party licensors do not guarantee the accuracy, adequacy, timeliness and/or completeness of any S&P Indices' index, any data included therein, or any data from which it is based, or any communication with respect thereto, including, but not limited to, oral or written communications (including electronic communications) with respect thereto.  S&P INDICES AND ITS THIRD PARTY LICENSORS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE MARKS, THE INDEX OR ANY DATA INCLUDED THEREIN.  S&P INDICES AND ITS THIRD PARTY LICENSORS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS IN THE INDEX OR ANY DATA INCLUDED THEREIN AND THE DISSEMINATION THEREOF.  S&P Indices and its third party licensors make no warranties, express or implied, as to results to be obtained from use of information provided by S&P Indices and its third party licensors and used in this service, and S&P Indices and its third party licensors expressly disclaim all warranties of suitability with respect thereto.  Without limiting the foregoing, the Indices are calculated by S&P Indices and its third party licensors based on a sampling of data reported to S&P Indices or its third party licensor from third parties, and neither S&P Indices nor its third party licensors verify the adequacy, accuracy, timeliness or completeness of such data.  Neither S&P Indices nor its third party licensor guarantee that such data and/or the sampling thereof shall be representative of the rate of actual consumer credit default or of any other attribute or activity. 

Neither S&P Indices nor its third party licensors shall be liable for any claims or losses of any nature in connection with information contained in this document, including but not limited to, lost profits or punitive or consequential damages, even if it is advised of the possibility of same. These materials have been prepared solely for informational purposes. S&P Indices and its third party licensors make no representation with respect to the accuracy or completeness of these materials, the content of which may change without notice. The methodology involves rebalancing and maintenance of the indices that are made periodically during each year and may not, therefore, reflect real-time information. S&P Indices and its third party licensors shall not have any obligation to update any published index in light of any change to the data used to calculate such index or to provide anyone with notice of such change. 

Analytic services and products provided by S&P Indices are the result of separate activities designed to preserve the independence and objectivity of each analytic process.  S&P Indices has established policies and procedures to maintain the confidentiality of non-public information received during each analytic process.  S&P Indices and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.

WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P INDICES OR ITS THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.  No third party, including any sublicensee, investor, customer or user of a product, is intended to be a third party beneficiary to any agreement between or among any of licensee, S&P Indices and/or any of its third party licensors.

Copyright © 2012 by Standard & Poor's Financial Services LLC. All rights reserved.

Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission.

S&P, S&P 500, S&P Indices, and STANDARD & POOR'S are registered trademarks of Standard & Poor's Financial Services LLC.

© 2012 Experian Information Solutions, Inc. * All rights reserved.

SOURCE S&P Indices

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED