S&P/Experian Consumer Credit Default Indices Show Drop In Composite Rate In April 2021

Rhea-AI Summary

S&P Dow Jones Indices and Experian announced a drop in the S&P/Experian Consumer Credit Default Indices for April 2021. The composite default rate decreased by four basis points to 0.50%. In contrast, the bank card default rate rose by eight basis points to 3.23%. Notably, defaults fell in four out of five major MSAs, with Miami experiencing the largest decline of 19 basis points to 1.04%. The first mortgage and auto loan default rates also saw drops, with figures at 0.33% and 0.43%, respectively.

Positive

• Composite default rate decreased to 0.50%, down from 0.54% in March 2021.
• First mortgage default rate decreased to 0.33%, down from 0.37% in March 2021.
• Auto loan default rate decreased to 0.43%, down from 0.48% in March 2021.
• Lower default rates observed in four out of five major MSAs.

Negative

• Bank card default rate increased by eight basis points to 3.23%.

NEW YORK, May 18, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through April 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 four basis points lower at 0.50%. The bank card default rate rose eight basis points to 3.23%. The auto loan default rate was down five basis points to 0.43% and the first mortgage default rate decreased four basis points to 0.33%.

Four of the five major metropolitan statistical areas ("MSAs") showed lower default rates compared to last month. Miami saw the largest drop, falling 19 basis points to 1.04%. Chicago decreased nine basis points to 0.50% while Dallas was down eight basis points to 0.51%. New York was three basis points lower at 0.83%. Los Angeles was the only MSA that increased, up two basis points to 0.52%.

The table below summarizes the April 2021 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	April 2021 Index Level	March 2021 Index Level	April 2020 Index Level
Composite	0.50	0.54	0.90
First Mortgage	0.33	0.37	0.66
Bank Card	3.23	3.15	4.23
Auto Loans	0.43	0.48	0.66
Source: S&P/Experian Consumer Credit Default Indices
Data through April 2021

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

MSA	April 2021 Index Level	March 2021 Index Level	April 2020 Index Level
New York	0.83	0.86	0.95
Chicago	0.50	0.59	1.06
Dallas	0.51	0.59	0.88
Los Angeles	0.52	0.50	0.74
Miami	1.04	1.23	1.54
Source: S&P/Experian Consumer Credit Default Indices
Data through April 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 S&P Global stock symbol?

The stock symbol for S&P Global is SPGI.

What did the April 2021 Consumer Credit Default Indices report show for bank card defaults?

The April 2021 report showed bank card defaults increased to 3.23%, up eight basis points.

How did the composite default rate change from March to April 2021?

The composite default rate decreased from 0.54% in March to 0.50% in April 2021.

Which major metropolitan area saw the largest drop in default rates in April 2021?

Miami saw the largest drop in default rates, falling 19 basis points to 1.04%.