S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES SHOW SEVENTH CONSECUTIVE RISE IN COMPOSITE RATE IN JUNE 2022

Rhea-AI Summary

First Mortgage Default Rate Rises

The S&P/Experian Consumer Credit Default Indices report a rise in the composite default rate to 0.53% as of June 2022, marking its highest level since September 2020. The bank card default rate increased to 2.55% and auto loan defaults rose to 0.62%. In major metropolitan areas, Miami saw the largest increase, reaching 0.99%. Notably, the first mortgage default rate is now at 0.38%, up from 0.36% in May 2022.

Positive

• None.

Negative

• Composite default rate increased to 0.53%, indicating rising consumer credit risk.
• First mortgage default rate rose to 0.38%, up from 0.36% in May 2022.
• Bank card default rate climbed to 2.55%, compared to 2.49% in May 2022.
• Major metropolitan areas showed increased default rates, with Miami reaching 0.99%.

First Mortgage Default Rate at Highest Since September 2020

NEW YORK, July 19, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through June 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 0.53%. The bank card default rate climbed six basis points to 2.55%. The auto loan default rate was one basis point higher at 0.62% while the first mortgage default rate was up two basis points to 0.38%.

Four of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Miami had the largest increase, up 15 basis points to 0.99%. Chicago and Dallas each rose five basis points, to 0.58% and 0.57% respectively. Los Angeles was one basis point higher at 0.46%. New York dropped six basis points to 0.71%.

The table below summarizes the June 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	June 2022	May 2022	June 2021
Composite	0.53	0.51	0.41
First Mortgage	0.38	0.36	0.26
Bank Card	2.55	2.49	2.83
Auto Loans	0.62	0.61	0.30
Source: S&P/Experian Consumer Credit Default Indices
Data through June 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	June 2022	May 2022	June 2021
New York	0.71	0.77	0.43
Chicago	0.58	0.53	0.38
Dallas	0.57	0.52	0.42
Los Angeles	0.46	0.45	0.37
Miami	0.99	0.84	0.82
Source: S&P/Experian Consumer Credit Default Indices
Data through June 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 organisations to prevent identity fraud and crime.

We have 20,600 people operating across 43 countries and every day we're investing in new technologies, talented people, and innovation to help all our clients maximise 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.

Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian. Other product or company names mentioned herein are the property of their respective owners.

FOR MORE INFORMATION:
spdji.comms@spglobal.com

April Kabahar
Head of Communications
S&P Dow Jones Indices
New York, USA
(+1) 917 796 3121
april.kabahar@spglobal.com

Lauren Davis
Americas Communications
S&P Dow Jones Indices
New York, USA
(+1) 484 269 7118
lauren.davis@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 first mortgage default rate for EXPGY and SPGI?

As of June 2022, the first mortgage default rate is at 0.38%.

How has the composite default rate changed for EXPGY and SPGI?

The composite default rate increased to 0.53% in June 2022.

Which city had the highest increase in default rates?

Miami experienced the largest increase, reaching a default rate of 0.99%.

What are the recent trends in consumer credit defaults for S&P and Experian?

The report indicates a seventh consecutive rise in the composite default rate.

What does the rise in bank card default rate mean for EXPGY and SPGI?

The bank card default rate rose to 2.55%, signifying increased consumer credit risk.