S&P/Experian Consumer Credit Default Indices Show Lower Composite Rate For Fourth Consecutive Month In June 2020

Rhea-AI Summary

S&P Dow Jones Indices and Experian reported a decline in consumer credit defaults for June 2020. The composite rate decreased by 12 basis points to 0.66%, with notable drops in various categories: bank card default rates fell by 17 basis points to 4.23%, auto loan defaults dropped 16 basis points to 0.40%, and first mortgage defaults decreased by 11 basis points to 0.41%. Four of five major metropolitan areas saw lower default rates, led by Chicago (0.69%) and Dallas (0.66%). Overall, these trends indicate improving consumer credit health.

Positive

• Composite default rate decreased to 0.66%, indicating improving consumer credit health.
• Bank card default rate fell to 4.23%, showing reduced credit risk for consumers.
• Auto loan defaults dropped to 0.40%, suggesting better payment behavior among borrowers.
• First mortgage default rate improved to 0.41%, reflecting positive trends in housing finance.

Negative

• Los Angeles was the only MSA with an increase in the default rate, rising to 0.72%.

NEW YORK, July 21, 2020 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through June 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 12 basis points lower at 0.66%. The bank card default rate fell 17 basis points to 4.23%. The auto loan default rate dropped 16 basis points to 0.40% and the first mortgage default rate fell 11 basis points to 0.41%.

Four out the five major metropolitan statistical areas ("MSAs") showed lower default rates compared to last month. Chicago showed the largest decrease, down 14 basis points to 0.69%. Dallas fell 13 basis points to 0.66%, while New York dropped nine basis points to 0.74%. Miami was three basis points lower, at 1.40%. Los Angeles was the only MSA with a higher rate, rising two basis points to 0.72%.

The table below summarizes the June 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	June 2020  Index Level	May 2020  Index Level	June 2019  Index Level
Composite	0.66	0.78	0.83
First Mortgage	0.41	0.52	0.59
Bank Card	4.23	4.40	3.90
Auto Loans	0.40	0.56	0.87
Source: S&P/Experian Consumer Credit Default Indices
Data through June 2020

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

MSA	June 2020  Index Level	May 2020  Index Level	June 2019  Index Level
New York	0.74	0.83	0.87
Chicago	0.69	0.93	0.88
Dallas	0.66	0.79	0.82
Los Angeles	0.72	0.70	0.61
Miami	1.40	1.43	1.43
Source: S&P/Experian Consumer Credit Default Indices
Data through June 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

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SOURCE S&P Dow Jones Indices

FAQ

What are the latest S&P consumer credit default rates for SPGI?

As of June 2020, the composite default rate is 0.66%, down from 0.78% in May 2020.

How did bank card default rates change according to the July 2020 report for SPGI?

The bank card default rate decreased by 17 basis points to 4.23% in June 2020.

What is the current auto loan default rate reported by S&P for SPGI?

The auto loan default rate was reported at 0.40% for June 2020.

Which metropolitan area saw an increase in default rates according to the report for SPGI?

Los Angeles saw an increase in the default rate, rising 2 basis points to 0.72%.