National Credit Default Rates Remain Stable in October 2013 According to the S&P/Experian Consumer Credit Default Indices
Three Cities Saw Default Rates Decrease in October 2013
PR Newswire
NEW YORK

NEW YORK, Nov. 19, 2013 /PRNewswire/ -- Data through October 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 stability in national default rates during the month. The national composite was 1.38% in October; it showed no change since September. The first mortgage default rate was 1.30% this month, marginally up from 1.28% posted last month. The second mortgage posted 0.72% in October, slightly up from 0.69% September rate. The auto loan default rate was 1.14% in October, marginally down from a 1.15% posted in the previous month. The bank card rate posted 2.97% in October; down from 3.14% September rate. 

"Consumer financial well-being is in a good shape," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "The indices remain at pre-financial crisis levels and are stable. The national composite remained flat since September at 1.38%.The first and second mortgages were a few basis points up in October; they posted 1.30% and 0.72%. Auto loan default rate was 1.14%, one basis point lower than in September. Bank card default rate reached a new low of 2.97%; for the first time in the history of the index it was below 3%. The Composite, first mortgage and bank card default rates remain below their respective levels a year ago.

"Three cities – Chicago, Los Angeles and New York – saw default rate decreases. Los Angeles posted a recent low of 1.25%. Miami remained flat. Dallas posted a default rate increase. All cities except Miami posted rates below 2%. Miami has a highest rate among the five cities we cover (2.11%) and Los Angeles - the lowest (1.25%). Four cities – Chicago, Los Angeles, Miami and New York – remain below default rates they posted a year ago, in October 2012."

The table below summarizes the October 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

October 2013
Index Level

September 2013
Index Level

October 2012
Index Level

 
 

Composite

1.38

1.38

1.55

 

First Mortgage

1.30

1.28

1.47

 

Second Mortgage

0.72

0.69

0.65

 

Bank Card

2.97

3.14

3.68

 

Auto Loans

1.14

1.15

1.14

 

                              Source: S&P/Experian Consumer Credit Default Indices

 

                              Data through October 2013

     

 

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

Metropolitan
Statistical Area

October 2013
Index Level

September 2013
Index Level

October 2012
Index Level

 
 

New York

1.27

1.38

1.35

 

Chicago

1.66

1.77

1.78

 

Dallas

1.35

1.23

1.26

 

Los Angeles

1.25

1.38

1.44

 

Miami

2.11

2.11

2.44

 

                             Source: S&P/Experian Consumer Credit Default Indices

 

                             Data through October 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

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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