S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES SHOW HIGHER RATES FOR ALL LOAN TYPES IN DECEMBER 2021

Rhea-AI Summary

S&P Dow Jones Indices and Experian report that the S&P/Experian Consumer Credit Default Indices indicate an uptick in consumer credit defaults as of December 2021. The composite default rate rose three basis points to 0.40%, with notable increases in various loan types. The bank card default rate rose to 1.95%, auto loan defaults increased to 0.49%, and first mortgage defaults reached 0.28%. Miami saw the most significant rise among major metropolitan areas, increasing by 24 basis points to 0.97%.

Positive

• Overall consumer credit default rates show only slight increases across various types of loans, indicating relatively stable credit conditions.

Negative

• Composite default rate increased to 0.40%, up from 0.37% in November 2021.
• Bank card default rate reached 1.95%, indicating ongoing concerns in consumer credit health.
• Auto loan defaults rose to 0.49%, showing potential growth in financial stress among consumers.

NEW YORK, Jan. 18, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through December 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 rose three basis points to 0.40%. The bank card default rate increased one basis point to 1.95%. The auto loan default rate was up five basis points to 0.49% while the first mortgage default rate was two basis points higher at 0.28%.

Three of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Miami had the largest increase, up 24 basis points to 0.97%. New York was three basis points higher at 0.33% and Los Angeles was up two basis points to 0.36%. Dallas was unchanged at 0.49% while Chicago fell one basis point to 0.44%.

The table below summarizes the December 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	December 2021	November 2021	December 2020
Composite	0.40	0.37	0.46
First Mortgage	0.28	0.26	0.29
Bank Card	1.95	1.94	2.63
Auto Loans	0.49	0.44	0.64
Source: S&P/Experian Consumer Credit Default Indices
Data through December 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	December 2021	November 2021	December 2020
New York	0.33	0.30	0.42
Chicago	0.44	0.45	0.52
Dallas	0.49	0.49	0.56
Los Angeles	0.36	0.34	0.35
Miami	0.97	0.73	0.86
Source: S&P/Experian Consumer Credit Default Indices
Data through December 2021

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 is the S&P/Experian Consumer Credit Default Indices December 2021 report about?

The report shows an increase in consumer credit defaults, with the composite rate rising to 0.40%.

How did default rates change in major metropolitan areas in December 2021?

Miami had the largest increase at 0.97%, while New York and Los Angeles also saw slight rises.

What does a composite default rate of 0.40% indicate about consumer credit?

It indicates a slight increase in defaults, suggesting a growing concern about consumer credit health.

What was the bank card default rate in December 2021 according to S&P Dow Jones Indices?

The bank card default rate increased to 1.95%.

Which loan type had the highest default rate increase in December 2021?

The bank card default rate had the highest, rising to 1.95%.