S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES SHOW FIFTH STRAIGHT INCREASE IN COMPOSITE RATE IN APRIL 2022

Rhea-AI Summary

Auto Loan Default Rate Hits Highest Since December 2020

According to data released by S&P Dow Jones Indices and Experian for April 2022, the composite credit default rate rose to 0.50%, marking a two basis point increase. The auto loan default rate also saw a rise, reaching 0.58%, up two basis points. The bank card default rate surged to 2.52%, a 25 basis point increase. Notably, Miami reported the highest regional default rate at 0.80%. This marks the fifth consecutive month of increase in the composite rate, indicating potential concerns about consumer credit health.

Positive

• S&P/Experian Composite Credit Default Rate increased by only two basis points to 0.50%, indicating modest changes in consumer credit defaults.
• Auto loan default rate increased to 0.58%, suggesting that the rise is modest over the longer-term perspective.

Negative

• Bank card default rate surged to 2.52%, indicating growing financial distress among consumers.
• The auto loan default rate's rise to the highest level since December 2020 raises concerns about consumer credit trends.

Auto Loan Default Rate at Highest Level Since December 2020

NEW YORK, May 17, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through April 2022 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 rose two basis points to 0.50%. The bank card default rate increased 25 basis points to 2.52%. The auto loan default rate rose two basis points to 0.58% while the first mortgage default rate was unchanged at 0.35%.

Two of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Miami had the largest increase, up four basis points to 0.80%. Chicago rose one basis point to 0.53%. Dallas fell four basis points to 0.52% while New York dropped two basis points to 0.78%. Los Angeles was one basis point lower at 0.38%.

The table below summarizes the April 2022 results for the S&P/Experian Consumer Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

Index Levels – National Indices
Index	April 2022	March 2022	April 2021
Composite	0.50	0.48	0.50
First Mortgage	0.35	0.35	0.33
Bank Card	2.52	2.27	3.23
Auto Loans	0.58	0.56	0.43
Source: S&P/Experian Consumer Credit Default Indices
Data through April 2022

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

Index Levels – Major MSAs
MSA	April 2022	March 2022	April 2021
New York	0.78	0.80	0.83
Chicago	0.53	0.52	0.50
Dallas	0.52	0.56	0.51
Los Angeles	0.38	0.39	0.52
Miami	0.80	0.76	1.04
Source: S&P/Experian Consumer Credit Default Indices
Data through April 2022

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

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.spglobal.com/spdji/en/.

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

View original content:https://www.prnewswire.com/news-releases/spexperian-consumer-credit-default-indices-show-fifth-straight-increase-in-composite-rate-in-april-2022-301549222.html

SOURCE S&P Dow Jones Indices

FAQ

What does the April 2022 S&P/Experian Consumer Credit Default Indices report indicate?

The report indicates a rise in the composite credit default rate to 0.50%, with significant increases in auto loan and bank card default rates.

How much did the auto loan default rate increase in April 2022?

The auto loan default rate increased by two basis points to 0.58% in April 2022.

What is the significance of the bank card default rate increase to 2.52%?

The increase to 2.52% highlights growing financial difficulties among consumers and potential risks in the credit market.

Which metropolitan area reported the highest auto loan default rate in April 2022?

Miami had the highest auto loan default rate at 0.80% in April 2022.