National Credit Default Rates Report Mixed Results in February 2015 According to the S&P/Experian Consumer Credit Default Indices
Three of the Five Cities Saw Default Rates Increase in February 2015
PR Newswire
NEW YORK

NEW YORK, March 17, 2015 /PRNewswire/ -- Data through February 2015, 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, continued to show a slight upward trend. The bank card default rate led the way, reporting an increase of 23 basis points to 2.84%, the highest reported rate since July 2014. This also marked the first year-over-year increase in the bank card default rate since July 2010. The auto loan default rate reported an increase of three basis points to 1.06%. The second mortgage default rate increased by two basis points to 0.66%. The national composite rate remained flat, reporting a default rate of 1.12% in February. The first mortgage default rate decreased for the first time since July 2014, down two basis points to 1.00% from the previous month.

The five major cities reported mixed results in February with two cities showing lower default rates. Miami reported a default rate of 1.17%, a decrease of 18 basis points, its largest decrease since September 2014. Los Angeles reported a decrease for a second consecutive month at 0.83%, down one basis point. Dallas continued its positive trend for the fifth consecutive month with a 1.17% default rate, an increase of seven basis points.  New York posted its third consecutive increase with a reported rate of 1.14%, up 16 basis points from its historic November 2014 low. Chicago also saw its default rate increase to 1.18%, an increase of three basis points from the previous month.

"The combination of a strong February employment report and continued low oil prices all point to a buoyant economy with optimistic consumers," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "The recent, though modest, increases in default rates for bank cards and auto loans suggest that consumers are becoming more free-spending. Mortgage default rates, the largest component in the national index, held steady and prevented a rise in the national numbers. A true test of consumer credit quality and the prospects for future default rates will come in the second half of 2015 by which time the Fed will most likely have begun to raise interest rates. Given current low levels of default rates and low debt service burdens, there are no concerns of a consumer credit crisis any time soon."

The table below summarizes the February 2015 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

February 2015
 Index Level

January 2015
 Index Level

February 2014
 Index Level

 
 

 Composite

1.12

1.12

1.30

 

 First Mortgage

1.00

1.02

1.23

 

 Second Mortgage

0.66

0.64

0.69

 

 Bank Card

2.84

2.61

2.83

 

 Auto Loans

1.06

1.03

1.03

 

                             Source: S&P/Experian Consumer Credit Default Indices

 

                             Data through February 2015

     

 

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

Metropolitan
Statistical Area

February 2015
 Index Level

January 2015
 Index Level

February 2014
 Index Level

 
 

New York

1.14

1.10

1.46

 

Chicago

1.18

1.15

1.67

 

Dallas

1.17

1.10

1.16

 

Los Angeles

0.83

0.84

1.05

 

Miami

1.17

1.35

2.23

 

                             Source: S&P/Experian Consumer Credit Default Indices

 

                             Data through February 2015

     

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 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 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

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC, a part of McGraw Hill Financial. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

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 2014, we were named by Forbes magazine as one of the "World's Most Innovative Companies."

We employ approximately 16,000 people in 39 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao 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, 2014, was US$4.8 billion.

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

For more information:

Dave Guarino
Communications
S&P Dow Jones Indices
dave.guarino@spdji.com 
(+1) 212-438-1471

David Blitzer
Managing Director and Chairman of the Index Committee
S&P Dow Jones Indices
david.blitzer@spdji.com 
(+1) 212-438-3907

Jordan Takeyama
Experian Public Relations
jordan.takeyama@experian.com 
(+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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