S&P/Experian Consumer Credit Default Indices: 3rd Straight Increase In Composite Rate In March 2021
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S&P/Experian Consumer Credit Default Indices: 3rd Straight Increase In Composite Rate In March 2021




S&P/Experian Consumer Credit Default Indices: 3rd Straight Increase In Composite Rate In March 2021

On April 20, 2021, S&P Dow Jones Indices and Experian released data through March 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 one basis point higher at 0.54%. The bank card default rate rose 22 basis points to 3.15%. The auto loan default rate was down three basis points to 0.48% and the first mortgage default rate was unchanged at 0.37%.

National S&P/Experian Consumer Credit Default Indices

Four of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. The rate for Miami increased seven basis points to 1.23% while Los Angeles rose six basis points to 0.50%. Chicago was four basis points higher at 0.59% and New York was up three basis points to 0.86%. Dallas was unchanged at 0.59%.

The table below summarizes the March 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

March 2021
 Index Level

February 2021
 Index Level

March 2020
 Index Level

Composite

0.54

0.53

0.99

First Mortgage

0.37

0.37

0.77

Bank Card

3.15

2.93

3.94

Auto Loans

0.48

0.51

0.81

Source: S&P/Experian Consumer Credit Default Indices Data through March 2021

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

MSA

March 2021
 Index Level

February 2021
 Index Level

March 2020
 Index Level

New York

0.86

0.83

0.99

Chicago

0.59

0.55

1.21

Dallas

0.59

0.59

1.01

Los Angeles

0.50

0.44

0.71

Miami

1.23

1.16

1.43

Source: S&P/Experian Consumer Credit Default Indices Data through March 2021

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.

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DISCLAIMER: The views expressed in this insight piece are those of the author and do not necessarily reflect the official policy or position of IndraStra Global.