Press Release

Consumer Credit Default Rates Decreased in February 2012 According to the S&P/Experian Credit Default Indices

 
 
image Print   image Reprints  

NEW YORK, March 20, 2012 /PRNewswire/ -- Data through February 2012, released today by S&P Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed that all loan types saw a decrease in default rates for a second consecutive month. The national composite declined to 2.09% in February from the 2.16% January rate. The first mortgage default rate decreased from January's 2.08% to February's 2.02%. Second mortgage, bank card and auto loans default rates also declined from 1.30%, 4.57% and 1.27% in January to 1.20%, 4.41% and 1.22% in February, respectively.

"It seems that 2012 has begun on a positive note for the consumer," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices. "We appear to be resuming the downward trend in consumer default rates that began in the spring of 2009. With last month's release we reported that the second half of 2011 saw a rise in consumer defaults, led by four consecutive monthly increases in first mortgage default rates. January and February's combined reports shows broad based declines in all types of default rates, which is a good way to start the year.

"The first mortgage default rate fell by six basis points in February, bringing this rate closer to the lows seen in the summer of 2011. Second mortgage and bank card default rates fell by even more during that month. In fact, both second mortgage and bank card default rates are their lowest in the three-year history of these data. While bank cards tend to have the highest default rate, at 4.41 % it is now less than half of the 9.15% recorded less than two years ago.

"Four of the five cities we cover saw their default rates drop. For the second consecutive month, Los Angeles saw the largest decline, moving from 2.54% in December, to 2.36% in January, to 1.87% in February. After three consecutive months of increasing default rates, Miami's fell from 4.80% in January to 4.54% in February. It had the highest default rate of the cities we cover, which is no surprise given the relative state of its housing market. Dallas was the only city where default rates rose, from 1.53% to 1.61%, but it still retains the lowest rate among the five cities we follow."

The table below summarizes the February 2012 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.


The table below summarizes the February 2012 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

S&P/Experian Consumer Credit Default Indices

 

National Indices

 

 Index

February 2012
Index
Level

January 2012
Index
Level

February 2011
Index
Level

 

 

 Composite

2.09

2.16

2.54

 

 First Mortgage

2.02

2.08

2.45

 

 Second Mortgage

1.20

1.30

1.46

 

 Bank Card

4.41

4.57

5.67

 

 Auto Loans

1.22

1.27

1.58

 

Source: S&P/Experian Consumer Credit Default Indices

 

 

Data through February 2012

 

 

 

The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:

Metropolitan
Statistical Area

February 2012
Index
Level

January 2012
Index
Level

February 2011
Index
Level

 

 

New York

2.04

2.23

2.53

 

Chicago

2.71

2.76

2.82

 

Dallas

1.61

1.53

1.78

 

Los Angeles

1.87

2.36

2.70

 

Miami

4.54

4.80

6.05

 

Source: S&P/Experian Consumer Credit Default Indices

 

Data through February 2012

 

 

 


About S&P Indices

S&P Indices, a leading brand of the McGraw-Hill Companies (NYSE: MHP), maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.45 trillion is directly indexed to our indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit: www.standardandpoors.com/indices.

It is not possible to invest directly in an index. S&P Indices does not sponsor, endorse, sell, or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses. S&P Indices receives compensation in connection with licensing its indices to third parties.

About Experian

Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company 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 2011 was $4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil.

For more information, visit http://www.experianplc.com.

Automotive News TV
 


Rocket Fuel