National Credit Default Rates Marginally Increased in July 2013
According to the S&P/Experian Consumer Credit Default Indices
All Five Cities Saw Default Rates Increase in July 2013
New York, August 20, 2013 – Data through July 2013, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed increase in national default rates during the month. The national composite was 1.35% in July, up from 1.34% in June. The first mortgage was 1.25% in July, up from 1.23% posted last month. The second mortgage remained flat since last month at its historic low of 0.54%. The auto loan default rate posted 1.03% in July, up from a 1.00% June level. The bank card rate hit a new low of 3.22% in July; it was 3.41% in June.
“Consumer credit quality remains healthy”, says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. “The first mortgage was 1.25% in July, only two basis points up from its recent low posted last month. Across all other categories default rates remain at or marginally above their historic lows. The second mortgage default rate remained flat at a new low of 0.54% reached last month. Bank card default rate hit a new low of 3.22%, 19 basis points down from June and 41 basis points down from May level. Auto loan default rate was 1.03%, three basis points up from its historic low posted last month. All loan types remain below their respective levels a year ago.
“All five cities saw increased default rates in July. Miami increased the most; it posted 2.06%, 31 basis points up from last month. Chicago recorded 1.75%, 16 basis points above the last month’s level. New York increased by nine basis points, Dallas by five and Los Angeles by three basis points. All five cities remain below default rates they posted a year ago, in July 2012.”
The table below summarizes the July 2013 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.
The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:
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Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.
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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.consumercreditindices.standardandpoors.com.
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