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

Rhea-AI Summary

On July 20, 2021, S&P Dow Jones Indices and Experian published the latest S&P/Experian Consumer Credit Default Indices data through June 2021. The composite credit default rate decreased by three basis points to 0.41%. Significant declines were observed in bank card defaults, which fell 18 basis points to 2.83%, and auto loan defaults, down four basis points to 0.30%. First mortgage defaults also decreased by two basis points to 0.26%. Among major metropolitan areas, Los Angeles showed the largest drop in defaults at 0.37%.

Positive

• Composite credit default rate declined to 0.41%, indicating improved consumer credit health.
• Bank card default rate fell to 2.83%, reflecting reduced financial stress on consumers.
• Auto loan default rate decreased to 0.30%, suggesting stability in the auto lending market.
• First mortgage default rate improved to 0.26%, highlighting a positive trend in home financing.

Negative

• Miami's default rate increased one basis point to 0.82%, indicating localized financial challenges.

NEW YORK, July 20, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through June 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 three basis points lower at 0.41%. The bank card default rate fell 18 basis points to 2.83%. The auto loan default rate was down four basis points to 0.30% and the first mortgage default rate decreased two basis points to 0.26%.

Three of the five major metropolitan statistical areas ("MSAs") showed lower default rates compared to last month. Los Angeles saw the largest decrease, falling five basis points to 0.37%. New York and Chicago each dropped three basis points, to 0.43% and 0.38% respectively. Dallas was unchanged at 0.42% while Miami increased one basis point to 0.82%. 

The table below summarizes the June 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	June 2021	May 2021	June 2020
Composite	0.41	0.44	0.66
First Mortgage	0.26	0.28	0.41
Bank Card	2.83	3.01	4.23
Auto Loans	0.30	0.34	0.40
Source: S&P/Experian Consumer Credit Default Indices
Data through June 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	June 2021	May 2021	June 2020
New York	0.43	0.46	0.74
Chicago	0.38	0.41	0.69
Dallas	0.42	0.42	0.66
Los Angeles	0.37	0.42	0.72
Miami	0.82	0.81	1.40
Source: S&P/Experian Consumer Credit Default Indices
Data through June 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 latest consumer credit default rate for June 2021 from S&P and Experian?

The consumer credit default rate for June 2021 is 0.41%, down three basis points from May.

How did bank card defaults change in June 2021?

Bank card defaults decreased by 18 basis points to 2.83% in June 2021.

Which major metropolitan area had the largest decrease in default rates in June 2021?

Los Angeles had the largest decrease, with a default rate falling to 0.37%.

What are the implications of the June 2021 default rate trends for investors in SPGI?

The declining default rates may suggest better economic conditions, positively influencing investor sentiment towards SPGI.