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

Rhea-AI Summary

S&P Dow Jones Indices and Experian reported that consumer credit defaults have risen through March 2022. The composite rate increased two basis points to 0.48%. The bank card default rate saw a significant rise of 12 basis points to 2.27%, while the auto loan default rate increased to 0.56% and the first mortgage rate reached 0.35%. Most major metropolitan areas recorded higher default rates, with New York experiencing the largest increase at 0.80%.

Positive

• Composite default rate increases indicate a potential rise in consumer credit activity despite defaults.
• Data sourced from a vast network covering approximately $11 trillion in loans enhances reliability.

Negative

• Increase in overall default rates could indicate rising consumer financial stress.
• Significant rise in bank card default rate to 2.27% raises concerns about consumer credit health.

All Loan Types Show Increased Default Rates

NEW YORK, April 19, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through March 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 0.48%. The bank card default rate increased 12 basis points to 2.27%. The auto loan default rate rose four basis points to 0.56% while the first mortgage default rate was one basis point higher at 0.35%.

Four of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. New York had the largest increase, up 16 basis points to 0.80%. Los Angeles rose four basis points to 0.39%. Chicago was up three basis points to 0.52% while Dallas was one basis point higher at 0.56%. Miami dropped 19 basis points to 0.76%.

The table below summarizes the March 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	March 2022	February 2022	March 2021
Composite	0.48	0.46	0.54
First Mortgage	0.35	0.34	0.37
Bank Card	2.27	2.15	3.15
Auto Loans	0.56	0.52	0.48
Source: S&P/Experian Consumer Credit Default Indices
Data through March 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	March 2022	February 2022	March 2021
New York	0.80	0.64	0.86
Chicago	0.52	0.49	0.59
Dallas	0.56	0.55	0.59
Los Angeles	0.39	0.35	0.50
Miami	0.76	0.95	1.23
Source: S&P/Experian Consumer Credit Default Indices
Data through March 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

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SOURCE S&P Dow Jones Indices

FAQ

What are the March 2022 S&P/Experian Consumer Credit Default Indices results?

The composite rate rose to 0.48%, with bank card default rate at 2.27%, auto loan default at 0.56%, and first mortgage at 0.35%.

How has the default rate changed in New York as of March 2022?

New York's default rate increased by 16 basis points to 0.80%.

What does the increase in composite default rate suggest?

The rise in the composite default rate may suggest increasing financial stress among consumers.

Which metropolitan areas showed increased credit default rates in March 2022?

Four out of five major MSAs showed increases, with New York, Los Angeles, Chicago, and Dallas all reporting higher rates.

How often is the S&P/Experian Consumer Credit Default Indices published?

These indices are published on the third Tuesday of each month at 9:00 am ET.