S&P/Experian Consumer Credit Default Indices Show Higher Bank Card Default Rates In December 2017
Composite Default Rate Now At Highest Level Since March 2017

NEW YORK, Jan. 16, 2018 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through December 2017 for the S&P/Experian Consumer Credit Default Indices. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate increased two basis points from last month to 0.91%. The bank card default rate rose 16 basis points to 3.44%. The auto loan default rate fell one basis point from November to 1.10%. The first mortgage default rate increased two basis points to 0.68%.

All five major cities saw their composite default rates rise in December. Chicago had the largest increase, up six basis points to 1.15%. Dallas recorded an increase of three basis points to 0.85%, while New York was two basis points higher in December at 0.95%. The default rates for Los Angeles and Miami both rose one basis point from November, to 0.77% and 0.98% respectively.

The one basis point drop in the auto loan default rate marked the first monthly decrease since June 2017. Bank card default rates, in contrast, recorded their largest monthly increase since May 2017. Meanwhile, first mortgage default rates have been stable, remaining within a 20 basis point range for nearly two years.

"The default rate on bank cards has been rising consistently since December 2015," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "Defaults on auto loans are up slightly and first mortgage defaults are little changed over the last two to three years. Continued low unemployment and low inflation, rising home prices and stock market gains combined with gains in consumer confidence to support strong gains in retail sales in the last four months of 2017. However, the same expansion in consumer spending is now appearing in the bank card default data.

"The data are also showing some changes among the five cities tracked in this release. Chicago has now experienced the highest consumer credit default rate for three months running. For a long time, Miami's default rate was the highest across the five cities. The first mortgage default data dominate the city-level default indices. During the financial crisis, Miami experienced large declines in home prices which led to an increase in the mortgage defaults. As Miami home prices have recovered, its overall consumer credit default rate is no longer an outlier."

The table below summarizes the December 2017 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

December 2017 Index
Level

November 2017
Index Level

December 2016 Index
Level

Composite

0.91

0.89

0.89

First Mortgage

0.68

0.66

0.71

Second Mortgage

1.22

1.08

0.41

Bank Card

3.44

3.28

2.95

Auto Loans

1.10

1.11

1.03

Source: S&P/Experian Consumer Credit Default Indices

Data through December 2017

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

Metropolitan
Statistical Area

December 2017 Index
Level

November 2017
Index Level

December 2016 Index
Level

New York

0.95

0.93

0.87

Chicago

1.15

1.09

0.98

Dallas

0.85

0.82

0.67

Los Angeles

0.77

0.76

0.72

Miami

0.98

0.97

1.53

Source: S&P/Experian Consumer Credit Default Indices

Data through December 2017

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

ABOUT THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES

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.

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 products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has become home to over 1,000,000 indices across the spectrum of asset classes that have helped define 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

Experian is the world's leading global information services company. During life's big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.

We have more than 16,000 people operating across 37 countries and every day we're investing in new technologies, talented people and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group

FOR MORE INFORMATION:

David Blitzer
Managing Director and Chairman of Index Committee
New York, USA
(+1) 212 438 3907
[email protected]

Luke Shane
North America Communications
New York, USA
(+1) 212 438 8184
[email protected]

Jordan Takeyama
Experian Public Relations
(+1) 714 830 7561
[email protected]

SOURCE S&P Dow Jones Indices