National Credit Default Rates Reach Historical Low in June 2014 According to the S&P/Experian Consumer Credit Default Indices
Four of the Five Cities Saw Default Rates Decrease in June 2014
NEW YORK, July 15, 2014 /PRNewswire/ -- Data through June 2014, 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 decline in default rates. The national composite posted 1.02% in June, its lowest default rate in over 10 years of history. Auto and bank card saw their default rates increase while first mortgage continued its decline. After eight consecutive months of rate declines, the first mortgage default rate fell to 0.89%. The bank card default rate rose to 3.02% in June, its third consecutive increase from its historical low in March 2014. The auto default rate continues to remain stable around one percent as it posted 0.96% in June.
"Consumer credit default rates continue to drift lower and have reached a historical low," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "Recent economic reports are encouraging with the unemployment rate now at a six year low and strong job creation in recent months. The continued declines in consumer default rates confirm other indicators of an improving economy. Credit standards for mortgage loans continue to be somewhat restrictive and may be contributing to low first mortgage default rates.
"After reaching a historical low last month, Dallas was the only city to see its default rate increase; it posted 0.87% in June 2014. Chicago, Los Angeles, Miami and New York are at their lowest default rates since the start of the last recession. Miami continues to maintain the highest default rate of 1.68% while Los Angeles is now posting the lowest default rate of 0.75%. All five cities – Chicago, Dallas, Los Angeles, Miami and New York – remain below default rates seen a year ago."
The table below summarizes the June 2014 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 2014 |
May 2014 |
June 2013 |
|
Composite |
1.02 |
1.04 |
1.34 |
|
First Mortgage |
0.89 |
0.92 |
1.23 |
|
Second Mortgage |
0.57 |
0.57 |
0.54 |
|
Bank Card |
3.02 |
2.97 |
3.41 |
|
Auto Loans |
0.96 |
0.93 |
1.00 |
|
Source: S&P/Experian Consumer Credit Default Indices |
||||
Data through June 2014 |
The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:
Metropolitan |
June 2014 |
May 2014 |
June 2013 |
|
New York |
1.13 |
1.23 |
1.43 |
|
Chicago |
1.24 |
1.28 |
1.59 |
|
Dallas |
0.87 |
0.77 |
0.92 |
|
Los Angeles |
0.75 |
0.91 |
1.53 |
|
Miami |
1.68 |
1.74 |
1.75 |
|
Source: S&P/Experian Consumer Credit Default Indices |
||||
Data through June 2014 |
About S&P Dow Jones Indices
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 AverageTM, 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 1,000,000 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 2014 was US$4.8 billion. Experian employs approximately 16,000 people in 39 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
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.
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