S&P/Experian Consumer Credit Default Indices Show Fifth Straight Drop In Composite Rate In August 2021

Rhea-AI Summary

S&P Dow Jones Indices and Experian reported that the S&P/Experian Consumer Credit Default Indices for August 2021 show a composite default rate down one basis point to 0.39%, marking the fifth consecutive drop. The bank card default rate decreased by 16 basis points to 2.35%, while auto loan defaults increased by three basis points to 0.34%. Major cities like Chicago and New York experienced rising default rates, highlighting regional disparities in credit risk.

Positive

• Composite default rate dropped to 0.39%, the fifth straight decrease.
• Bank card default rate decreased by 16 basis points to 2.35%.

Negative

• Auto loan default rate rose by three basis points to 0.34%.
• Default rates increased in major MSAs like Chicago (up 4 basis points) and New York (up 2 basis points).

NEW YORK, Sept. 21, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through August 2021 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 one basis point lower at 0.39%. The bank card default rate fell 16 basis points to 2.35%. The auto loan default rate was up three basis points to 0.34% and the first mortgage default rate was unchanged at 0.27%.

Three of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Chicago had the largest increase, up four basis points to 0.43%. New York rose two basis points to 0.44% while Dallas was one basis point higher at 0.41%. Los Angeles dropped two basis points to 0.34% while Miami fell three basis points to 0.88%.

The table below summarizes the August 2021 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	August 2021	July 2021	August 2020
Composite	0.39	0.40	0.67
First Mortgage	0.27	0.27	0.48
Bank Card	2.35	2.51	3.45
Auto Loans	0.34	0.31	0.53
Source: S&P/Experian Consumer Credit Default Indices
Data through August 2021

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	August 2021	July 2021	August 2020
New York	0.44	0.42	0.96
Chicago	0.43	0.39	0.66
Dallas	0.41	0.40	0.65
Los Angeles	0.34	0.36	0.76
Miami	0.88	0.91	1.99
Source: S&P/Experian Consumer Credit Default Indices
Data through August 2021

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 is the current S&P/Experian composite default rate for August 2021?

The composite default rate for August 2021 is 0.39%, which is a decrease from 0.40% in July.

How did the bank card default rate change in August 2021?

The bank card default rate fell by 16 basis points to 2.35% in August 2021.

What were the changes in default rates for major metropolitan areas?

In August 2021, Chicago's default rate rose to 0.43%, New York's to 0.44%, and Dallas to 0.41%. Los Angeles and Miami saw decreases.

What does the increase in auto loan defaults indicate for the market?

The increase of three basis points to 0.34% in auto loan defaults may suggest rising credit risks in that segment.