S&P/Experian Consumer Credit Default Indices Show Composite Rate Unchanged In December 2020

Rhea-AI Summary

The S&P/Experian Consumer Credit Default Indices report for December 2020 reveals a stable composite default rate of 0.46%, unchanged from the previous month. The bank card default rate increased to 2.63%, while auto loan defaults remained steady at 0.64%. First mortgage defaults saw a slight rise to 0.29%. Among major metropolitan areas, Los Angeles and Chicago recorded declines in default rates, while New York noted an increase. The data underline the ongoing trends in consumer credit and defaults across various loan categories.

Positive

• Los Angeles and Chicago showed lower default rates.
• Composite default rate remained stable at 0.46%, indicating resilience.

Negative

• Bank card default rate increased by seven basis points to 2.63%.

NEW YORK, Jan. 19, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through December 2020 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 unchanged at 0.46%. The bank card default rate rose seven basis points to 2.63%. The auto loan default rate was unchanged at 0.64% and the first mortgage default rate was one basis point higher at 0.29%.

Two of the five major metropolitan statistical areas ("MSAs") showed lower default rates compared to last month. Los Angeles and Chicago each decreased two basis points, to 0.35% and 0.52% respectively. Dallas and Miami were both unchanged, at 0.56% and 0.86% respectively. New York was the only MSA to show an increase, up one basis point to 0.42%.

The table below summarizes the December 2020 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	December 2020 Index Level	November 2020 Index Level	December 2019 Index Level
Composite	0.46	0.46	0.96
First Mortgage	0.29	0.28	0.80
Bank Card	2.63	2.56	2.95
Auto Loans	0.64	0.64	1.02
Source: S&P/Experian Consumer Credit Default Indices
Data through December 2020

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

MSA	December 2020 Index Level	November 2020 Index Level	December 2019 Index Level
New York	0.42	0.41	1.09
Chicago	0.52	0.54	1.09
Dallas	0.56	0.56	0.98
Los Angeles	0.35	0.37	0.80
Miami	0.86	0.86	1.70
Source: S&P/Experian Consumer Credit Default Indices
Data through December 2020

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

View original content to download multimedia:http://www.prnewswire.com/news-releases/spexperian-consumer-credit-default-indices-show-composite-rate-unchanged-in-december-2020-301211015.html

SOURCE S&P Dow Jones Indices

FAQ

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

The S&P/Experian Consumer Credit Default Indices measure changes in consumer credit defaults across various loan categories.

What was the composite default rate in December 2020?

The composite default rate was 0.46% in December 2020, unchanged from November 2020.

How did the bank card default rate change in December 2020?

The bank card default rate rose to 2.63%, an increase of seven basis points from November 2020.

Which metropolitan areas had lower default rates in December 2020?

Los Angeles and Chicago recorded lower default rates of 0.35% and 0.52%, respectively.

What was the first mortgage default rate in December 2020?

The first mortgage default rate increased to 0.29% in December 2020.