National Credit Default Rates Hit a Post-Recession Low in June 2013 According to the S&P/Experian Consumer Credit Default Indices
Two of the Five Cities Saw Default Rates Decrease in June 2013
NEW YORK, July 16, 2013 /PRNewswire/ -- Data through June 2013, 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 decrease in national default rates during the month. Both national composite and the first mortgage default rates hit new post-recession lows. The national composite was 1.34% in June, down from 1.42% in May. The first mortgage was 1.23% in June, down from 1.31% posted last month. The second mortgage posted 0.54% in June, the lowest rate in the history of the index. It was down from 0.60% posted in May. The bank card rate was 3.41% in June vs. 3.63% in May. The auto loan default rate hit a new low in June posting 1.00%; it was marginally down from its 1.04% May level.
"Consumers' financial condition continues to improve," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "Across all categories default rates are falling. The first mortgage hit a new post-recession low of 1.23% in June. Bank card default rate was 3.41%, 22 basis points down from last month. The second mortgage and auto loan default rates hit new lows of 0.54% and 1.00% since the indices began in 2004. All loan types remain below their respective levels a year ago.
"Two of the five cities, New York and Miami, saw decreased default rates in June. New York dropped 61 basis points and Miami was down 13 basis points this month. Miami was at a post-recession low of 1.75%. Chicago, Dallas and Los Angeles were slightly up by four, seven and eight basis points respectively. All five cities have default rates at or less than 1.75% and remain below default rates they posted a year ago, in June 2012."
The table below summarizes the June 2013 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 |
June 2013 Index Level |
May 2013 Index Level |
June 2012 Index Level |
Composite |
1.34 |
1.42 |
1.52 |
First Mortgage |
1.23 |
1.31 |
1.41 |
Second Mortgage |
0.54 |
0.60 |
0.73 |
Bank Card |
3.41 |
3.63 |
3.97 |
Auto Loans |
1.00 |
1.04 |
1.04 |
Source: S&P/Experian Consumer Credit Default Indices |
|||
Data through June 2013 |
The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:
Metropolitan Statistical Area |
June 2013 Index Level |
May 2013 Index Level |
June 2012 Index Level |
New York |
1.43 |
2.04 |
1.64 |
Chicago |
1.59 |
1.55 |
1.84 |
Dallas |
0.92 |
0.85 |
0.87 |
Los Angeles |
1.53 |
1.45 |
1.60 |
Miami |
1.75 |
1.88 |
2.44 |
Source: S&P/Experian Consumer Credit Default Indices |
|||
Data through June 2013 |
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S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average™, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.
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About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group 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 March 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 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.
For more information:
Dave Guarino
Communications
S&P Dow Jones Indices
[email protected]
(+1) 212-438-1471
David Blitzer
Managing Director and Chairman of the Index Committee
S&P Dow Jones Indices
[email protected]
(+1) 212-438-3907
Jordan Takeyama
Experian Public Relations
[email protected]
(+1) 714-830-7561
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