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

Rhea-AI Summary

The S&P/Experian Consumer Credit Default Indices data for July 2020 indicates that the composite default rate remains stable at 0.66%. The default rate for bank cards decreased by 37 basis points to 3.86%, while auto loans increased by 7 basis points to 0.47%. First mortgage defaults rose 3 basis points to 0.44%. Notably, Miami reported the highest default increase of 43 basis points, reaching 1.83%, while Dallas and Chicago experienced slight decreases. These indices are crucial for understanding consumer credit trends.

Positive

• Composite default rate remained stable at 0.66%.
• Bank card default rate decreased by 37 basis points to 3.86%.

Negative

• Auto loan default rate increased by 7 basis points to 0.47%.
• First mortgage default rate increased by 3 basis points to 0.44%.
• Miami's default rate increased by 43 basis points to 1.83%, the highest among major cities.

NEW YORK, Aug. 18, 2020 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through July 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 0.66%. The bank card default rate fell 37 basis points to 3.86%. The auto loan default rate rose 7 basis points to 0.47% and the first mortgage default rate was 3 basis points higher at 0.44%.

Three out the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Miami showed the largest increase, up 43 basis points to 1.83%. New York was 12 basis points higher at 0.86%, while Los Angeles was up three basis points to 0.75%. Dallas fell five basis points to 0.61% and Chicago was two basis points lower at 0.67%.

The table below summarizes the July 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	July 2020  Index Level	June 2020 Index Level	July 2019 Index Level
Composite	0.66	0.66	0.85
First Mortgage	0.44	0.41	0.62
Bank Card	3.86	4.23	3.77
Auto Loans	0.47	0.40	0.89
Source: S&P/Experian Consumer Credit Default Indices
Data through July 2020

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

MSA	July 2020 Index Level	June 2020  Index Level	July 2019  Index Level
New York	0.86	0.74	0.89
Chicago	0.67	0.69	0.95
Dallas	0.61	0.66	0.83
Los Angeles	0.75	0.72	0.74
Miami	1.83	1.40	1.34
Source: S&P/Experian Consumer Credit Default Indices
Data through July 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.

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SOURCE S&P Dow Jones Indices

FAQ

What does the S&P/Experian Consumer Credit Default Indices report for July 2020 regarding default rates?

The report shows that the composite default rate was unchanged at 0.66%. Bank card defaults fell to 3.86%, while auto loans and first mortgages saw increases.

How did Miami's consumer credit default rate change in July 2020?

Miami's default rate rose by 43 basis points, reaching 1.83%, the largest increase among the major metropolitan areas.

What trends were observed in the S&P/Experian Consumer Credit Default Indices for major cities in July 2020?

Three out of five major cities reported higher default rates, with Miami, New York, and Los Angeles seeing increases.

What was the bank card default rate reported by the S&P/Experian Indices in July 2020?

The bank card default rate decreased to 3.86% in July 2020.

How does the July 2020 auto loan default rate compare to previous months according to the S&P/Experian Indices?

The auto loan default rate increased by 7 basis points to 0.47% in July, up from 0.40% in June.