S&P/Experian Consumer Credit Default Indices Show Second Straight Increase In Composite Rate In February 2021

Rhea-AI Summary

S&P Dow Jones Indices and Experian reported an increase in consumer credit defaults through February 2021. The composite default rate rose to 0.53%, up 5 basis points, while the bank card default rate increased by 21 basis points to 2.93%. Conversely, the auto loan default rate decreased to 0.51%. Notably, major metropolitan areas showed higher default rates, with New York at 0.83% and Miami at 1.16%. This data indicates ongoing concerns in consumer credit health.

Positive

• Auto loan default rate decreased to 0.51%, down 5 basis points.
• Despite overall increases, the decline in auto loan defaults may suggest improved payment behavior in that segment.

Negative

• Composite default rate increased to 0.53%, indicating rising credit distress.
• Bank card default rate rose to 2.93%, the highest observed since February 2020.
• Significant increases in default rates across all five major metropolitan areas.

NEW YORK, March 16, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through February 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 five basis points higher at 0.53%. The bank card default rate rose 21 basis points to 2.93%. The auto loan default rate was down five basis points to 0.51% and the first mortgage default rate was up five basis points to 0.37%.

All five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. The rate for New York increased 34 basis points to 0.83% while Miami rose 21 basis points to 1.16%. Los Angeles was 12 basis points higher at 0.44%. Chicago and Dallas were each up two basis points, to 0.55% and 0.59% respectively.

The table below summarizes the February 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	February 2021  Index Level	January 2021  Index Level	February 2020  Index Level
Composite	0.53	0.48	1.02
First Mortgage	0.37	0.32	0.84
Bank Card	2.93	2.72	3.41
Auto Loans	0.51	0.56	0.89
Source: S&P/Experian Consumer Credit Default Indices
Data through February 2021

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

MSA	February 2021  Index Level	January 2021  Index Level	February 2020  Index Level
New York	0.83	0.49	1.00
Chicago	0.55	0.53	1.21
Dallas	0.59	0.57	1.02
Los Angeles	0.44	0.32	0.80
Miami	1.16	0.95	1.66
Source: S&P/Experian Consumer Credit Default Indices
Data through February 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 was the S&P/Experian Consumer Credit Default Index for February 2021?

The composite default rate for February 2021 was 0.53%, up 5 basis points from January.

How did the bank card default rate change in February 2021?

The bank card default rate increased by 21 basis points to 2.93% in February 2021.

What were the default rates for major MSAs in February 2021?

New York's default rate was 0.83%, Miami's was 1.16%, and Los Angeles was at 0.44%.

What does the increase in the composite default rate indicate?

The increase in the composite default rate suggests growing concerns regarding consumer credit health.

When is the next release of the S&P/Experian Consumer Credit Default Indices data?

The indices are published on the third Tuesday of each month.