NEW YORK, March 21, 2017 /PRNewswire/ -- Data through
February 2017, 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, shows the composite rate up two basis
points from last month at 0.94% in February. The bank card default
rate recorded a 3.22% default rate, up one basis point from
January. Auto loan defaults came in at 1.05%, down one basis point
from the previous month. The first mortgage default rate came in at
0.74%, up two basis points from January.
The five major cities showed mixed results in February with two
higher default rates, two lower, and one unchanged. Dallas had the largest increase, reporting
0.83%, up eight basis points from January. New York reported 0.94% for February, rising
six basis points from the previous month. Chicago saw its default rate decrease four
basis points to 0.99%. Miami
reported a decrease, the first since October
2016, of 25 basis points at 1.42%. Los Angeles remained unchanged at 0.80%.
The national bank card default rate of 3.22% in February matches
a 44-month high unseen since July
2013. When comparing bank card default rates among the four
census divisions, the bank card default rate from the south is
considerably higher than the other three census
divisions.
"The increase in the Fed funds rate announced last week by the
Federal Reserve will push up the interest rate charged on bank
cards in the near future," says David M.
Blitzer, Managing Director and Chairman of the Index
Committee at S&P Dow Jones Indices. "The quarter percentage
point increase will be gradually passed through to the charges
faced by those borrowing with their credit cards. Based on the
projections made by members of the Fed's policy committee, we could
see three or possibly four additional increases this year. Given
the prospect of higher interest rates and continuing economic
expansion, the recent rise in bank card default rates is not
expected to immediately reverse. Interest rates on auto loans and
home mortgages are also likely to advance following the Fed's
action.
"The economy is expanding, adding over 200,000 new jobs each
month. However, wages are barely keeping up with inflation. Over
the 12 months through February 2017,
hourly earnings adjusted for inflation were unchanged. Inflation
has risen slightly in the past year and is now about 2%. The
longer term prospects for limiting or reversing the rise in bank
card defaults depends on the outlook for wages and inflation as
well as interest rates. While interest rates on home mortgages and
auto loans are likely to rise, the default rates don't show any
adverse trends now."
The table below summarizes the January
2017 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 2017
Index Level
|
January 2017
Index Level
|
February 2016
Index Level
|
|
|
Composite
|
0.94
|
0.92
|
0.97
|
|
First
Mortgage
|
0.74
|
0.72
|
0.84
|
|
Second
Mortgage
|
0.51
|
0.48
|
0.60
|
|
Bank Card
|
3.22
|
3.21
|
2.56
|
|
Auto Loans
|
1.05
|
1.06
|
1.05
|
|
Source:
S&P/Experian Consumer Credit Default Indices
|
|
Data through February
2017
|
|
|
|
|
|
|
The table below provides the S&P/Experian Consumer Default
Composite Indices for the five MSAs:
Metropolitan
Statistical Area
|
February 2017
Index Level
|
January 2017
Index Level
|
February 2016
Index Level
|
|
|
New York
|
0.94
|
0.88
|
0.97
|
|
Chicago
|
0.99
|
1.03
|
1.02
|
|
Dallas
|
0.83
|
0.75
|
1.03
|
|
Los
Angeles
|
0.80
|
0.80
|
0.76
|
|
Miami
|
1.42
|
1.67
|
1.07
|
|
Source:
S&P/Experian Consumer Credit Default Indices
|
|
Data through February
2017
|
|
For more information about S&P Dow Jones Indices, please
visit www.spdji.com
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
based on any other provider in the world. With over 1,000,000
indices and more than 120 years of experience constructing
innovative and transparent solutions, S&P Dow Jones Indices
defines 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
We are the leading global information services company,
providing data and analytical tools to our clients around the
world. We help businesses to manage credit risk, prevent fraud,
target marketing offers and automate decision making. We also help
people to check their credit report and credit score and protect
against identity theft. In 2015, we were named one
of the "World's Most Innovative Companies" by Forbes magazine.
We employ approximately 17,000 people in 37 countries and our
corporate headquarters are in Dublin,
Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
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 March 31, 2016, was
US$4.6 billion.
To find out more about our company, please visit
http://www.experianplc.com or watch our documentary, "Inside
Experian."
Experian and the Experian marks used herein are trademarks or
registered trademarks of Experian Information Solutions, Inc. Other
product and company names mentioned herein are the property of
their respective owners.
FOR MORE INFORMATION:
David Blitzer
Managing Director and Chairman of Index Committee
New York, USA
(+1) 212 438 3907
david.blitzer@spglobal.com
Luke Shane
North
America Communications
New York, USA
(+1) 212 438 8184
luke.shane@spglobal.com
Matt Tatham
Experian
Public Relations
917 446 7227
matt.tatham@experian.com
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 .
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bank-card-default-rates-rise-four-straight-months-in-february-2017-according-to-spexperian-consumer-credit-default-indices-300426971.html
SOURCE S&P Dow Jones Indices