S&P/Experian Indices Continue to Show Declining Default Rates
Monthly default rates across all credit lines declined in March, according to Standard & Poor’s and Experian’s Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults.
NEW YORK — Monthly default rates across all credit lines declined in March, according to Standard & Poor’s and Experian’s Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults.
The auto loan index had the largest decrease to a 1.47 percent default rate. The bank card index experienced the smallest decrease to a 5.59 percent default rate. The first and second mortgage indices declined to 2.33 percent and 1.42 percent, from 2.45 percent and 1.46 percent, respectively.
"Modest declines in consumer credit default rates continue across all major sectors as consumers gradually rebound from the financial crisis of two years ago," said David M. Blitzer, managing director and chairman of the Index Committee for S&P Indices. "Recent data from the Fed confirms a continuing decline in mortgage debt outstanding and a small increase in non-mortgage consumer debt driven by auto and similar loans. Bank card credit outstanding is declining. The declining debt levels, combined with the economic recovery, are supporting lower defaults and a gradual improvement in consumers' financial condition. This positive trend should help maintain the recovery."
Consumer credit defaults varied across major cities and regions of the United States. Among the five major Metropolitan Statistical Areas (MSAs) reported in this release each month, Los Angeles experienced a modest increase in defaults in March to 2.73 percent, from 2.70 percent in February. Miami and New York lead the way with largest decrease in defaults rates to 5.33 percent and 2.26 percent, from 6.05 percent and 2.53 percent, respectively. Dallas default rates declined to 1.65 percent and Chicago default rates decreased to 2.63 percent.
The table below summarizes the March 2011 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 | March Index Level | Change from February 2011 | Change from March 2010 |
Composite | 2.43 | -4.36% | -40.85% |
First Mortgage | 2.33 | -4.71% | -41.05% |
Second Mortgage | 1.42 | -2.73% | -49.13% |
Bank Card | 5.59 | -1.57% | -37.48% |
Auto Loans | 1.47 | -6.51% | -37.28% |
Source: S&P/Experian Consumer Credit Default Indices; Data through March 2011
The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:
Metropolitan Statistical Area | March Index Level | Change from February 2011 | Change from March 2010 |
New York | 2.26 | -10.58% | -46.98% |
Chicago | 2.63 | -6.85% | -40.94% |
Dallas | 1.65 | -7.16% | -47.14% |
Los Angeles | 2.73 | +1.31% | -52.66% |
Miami | 5.33 | -11.89% | -52.85% |
Source: S&P/Experian Consumer Credit Default Indices; Data through March 2011
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