S&P/Experian Consumer Credit Default Indices Show Composite Rate Steady In August 2020

Rhea-AI Summary

The S&P Dow Jones Indices and Experian have released data for the S&P/Experian Consumer Credit Default Indices through August 2020. The composite default rate increased by one basis point to 0.67%.

Notable decreases include the bank card default rate, which dropped 41 basis points to 3.45%, while the auto loan default rate rose six basis points to 0.53%, and the first mortgage default rate increased four basis points to 0.48%.

Miami recorded the highest increase among major metropolitan areas, rising 16 basis points to 1.99%.

Positive

• Bank card default rate decreased by 41 basis points to 3.45%.
• Overall consumer credit default rates remain relatively low despite slight increases.

Negative

• Composite default rate increased by 1 basis point to 0.67%.
• Auto loan default rate rose by 6 basis points to 0.53%.
• First mortgage default rate increased by 4 basis points to 0.48%.

NEW YORK, Sept. 15, 2020 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through August 2020 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 was up one basis point to 0.67%. The bank card default rate fell 41 basis points to 3.45%. The auto loan default rate rose six basis points to 0.53% and the first mortgage default rate was four basis points higher at 0.48%.

Four out the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Miami showed the largest increase, up 16 basis points to 1.99%. New York was 10 basis points higher at 0.96%, while Dallas rose four basis points to 0.65%. The rate for Los Angeles increased one basis point to 0.76%. Chicago was the only MSA showing a decrease, down one basis point to 0.65%.

The table below summarizes the August 2020 results for the S&P/Experian Consumer Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

National Indices
Index	August 2020  Index Level	July 2020  Index Level	August 2019  Index Level
Composite	0.67	0.66	0.92
First Mortgage	0.48	0.44	0.69
Bank Card	3.45	3.86	3.73
Auto Loans	0.53	0.47	0.98
Source: S&P/Experian Consumer Credit Default Indices
Data through August 2020

The table below provides the index levels for the five major MSAs tracked by the S&P/Experian Consumer Credit Default Indices.

MSA	August 2020  Index Level	July 2020  Index Level	August 2019  Index Level
New York	0.96	0.86	0.94
Chicago	0.66	0.67	1.05
Dallas	0.65	0.61	0.93
Los Angeles	0.76	0.75	0.77
Miami	1.99	1.83	1.28
Source: S&P/Experian Consumer Credit Default Indices
Data through August 2020

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.spindices.com/indices/indicators/sp-experian-consumer-credit-default-composite-index.

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 been innovating and developing across the spectrum of asset classes helping to 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 organizations to prevent identity fraud and crime.

We have 17,800 people operating across 45 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:

Ray McConville
North America Communications
New York, USA
(+1) 212 438 1678
raymond.mcconville@spglobal.com

Annie Russell
Experian Public Relations
(+1) 714 830 7927
annie.russell@experian.com

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SOURCE S&P Dow Jones Indices

FAQ

What are the latest S&P/Experian Consumer Credit Default Indices figures for August 2020?

The composite default rate is 0.67%, bank card default rate is 3.45%, auto loan default rate is 0.53%, and first mortgage default rate is 0.48%.

How did the default rates change across major metropolitan areas in August 2020?

Miami saw the largest increase of 16 basis points to 1.99%. New York increased by 10 basis points to 0.96%, while Chicago was slightly lower at 0.65%.

What does an increase in the composite default rate mean for investors in EXPGY and SPGI?

An increase in the composite default rate may indicate growing risks in consumer credit, potentially affecting investments in financial instruments tied to consumer credit.