S&P/Experian Consumer Credit Default Indices Show Higher Composite Rate In January 2021

Rhea-AI Summary

On February 16, 2021, S&P Dow Jones Indices and Experian announced the January 2021 updates for the S&P/Experian Consumer Credit Default Indices, revealing a composite default rate of 0.48%, an increase of two basis points. The bank card default rate rose to 2.72%, up nine basis points, while auto loan defaults decreased to 0.56%, a decline of eight basis points. First mortgage defaults increased by three basis points to 0.32%. Notably, Miami saw a rise to 0.95%, and New York increased to 0.49%. Data covers approximately $11 trillion in outstanding loans.

Positive

• Auto loan default rate decreased to 0.56%, down 8 basis points from December 2020.
• The composite default rate remains lower compared to January 2020 (1.02%).

Negative

• Composite default rate increased by 2 basis points from December 2020.
• Bank card default rate rose to 2.72%, showing financial stress among consumers.
• First mortgage default rate increased to 0.32%, up 3 basis points.

NEW YORK, Feb. 16, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through January 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 two basis points higher at 0.48%. The bank card default rate rose nine basis points to 2.72%. The auto loan default rate was down eight basis points to 0.56% and the first mortgage default rate was up three basis points to 0.32%.

Four of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. The rate for Miami increased nine basis points to 0.95% while New York rose seven basis points to 0.49%. Chicago and Dallas were each up one basis point, to 0.53% and 0.57% respectively. Los Angeles was the only MSA to show a decrease, down three basis points to 0.32%.

The table below summarizes the January 2021 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	January 2021  Index Level	December 2020  Index Level	January 2020  Index Level
Composite	0.48	0.46	1.02
First Mortgage	0.32	0.29	0.84
Bank Card	2.72	2.63	3.28
Auto Loans	0.56	0.64	0.99
Source: S&P/Experian Consumer Credit Default Indices
Data through January 2021

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

MSA	January 2021  Index Level	December 2020  Index Level	January 2020  Index Level
New York	0.49	0.42	1.07
Chicago	0.53	0.52	1.17
Dallas	0.57	0.56	1.07
Los Angeles	0.32	0.35	0.86
Miami	0.95	0.86	1.77
Source: S&P/Experian Consumer Credit Default Indices
Data through January 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 composite default rate for January 2021?

The composite default rate for January 2021 is 0.48%, an increase of 2 basis points.

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

The bank card default rate rose to 2.72%, an increase of 9 basis points.

What were the auto loan default rates in January 2021?

The auto loan default rate decreased to 0.56%, down 8 basis points from December 2020.

Which metropolitan area had the highest default rate in January 2021?

Miami had the highest default rate at 0.95%.

What are the implications of rising default rates for SPGI (S&P Global)?

Rising default rates may signal increased consumer financial stress, potentially affecting SPGI's market analysis and forecasts.