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
PR Newswire
NEW YORK

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

 

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 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

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 
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
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

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