2014

National Credit Default Rates Decreased in January 2013 According to the S&P/Experian Consumer Credit Default Indices Miami Default Rates Rose in January 2013

NEW YORK, Feb. 19, 2013 /PRNewswire/ -- Data through January 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 a decrease in national default rates during the month. The national composite was 1.63% in January 2013, down from 1.72% in December 2012. The first mortgage default rate moved down to 1.58% in January, from 1.68% in December. The second mortgage rate was unchanged at 0.69% since December. Auto loan default rates increased marginally in January posting 1.10%, up from the 1.09% December level. The bank card default rate hit the lowest post-recession pace of 3.41% in January; it was 3.53% in December.

"The beginning of 2013 continued the positive trend in consumer credit quality that we witnessed in 2012," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "The first mortgage and bank card default rates moved down, the second mortgage remained flat and auto loans were marginally up in January. All loan types remain below their respective levels a year ago.

"The national composite rate was 1.63% in January 2013, nine basis points below the December 2012 rate. It was primarily driven by the first mortgage rate, which was at 1.58% in January, ten basis points below the previous month.

"Three of the five cities we cover showed decreases in their default rates in January - Chicago, was down by five basis points, Dallas by seven and Los Angeles by three basis points. New York was marginally higher by two basis points. The major increase was Miami, up 38 basis points. Default rates in Miami went up for the third consecutive month; in January 2013 it was 1.01 percentage points above the October 2012 level. Miami had the highest default rate at 3.45% and Dallas - the lowest at 1.19%. All five cities remain below default rates they posted a year ago, in January 2012."

The table on the next page summarizes the January 2013 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

January 2013

Index Level

December 2012

 Index Level

January 2012

Index Level





Composite

1.63

1.72

2.16

First Mortgage

1.58

1.68

2.08

Second Mortgage

0.69

0.69

1.30

Bank Card

3.41

3.53

4.57

Auto Loans

1.10

1.09

1.27

                             Source: S&P/Experian Consumer Credit Default Indices

                             Data through January 2013



 

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

Metropolitan      Statistical Area

January 2013 Index Level

December 2012 Index Level

January 2012 Index Level





New York

1.53

1.51

2.23

Chicago

2.07

2.12

2.76

Dallas

1.19

1.26

1.53

Los Angeles

1.81

1.84

2.36

Miami

3.45

3.07

4.80

                             Source: S&P/Experian Consumer Credit Default Indices

                             Data through January 2013



About S&P Dow Jones Indices

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc. is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial AverageSM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.

It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, SPFS, Dow Jones, and their respective affiliates, parents, subsidiaries, directors, officers, shareholders, employees and agents (collectively "S&P Dow Jones Indices") does not sponsor, endorse, sell, or promote any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of any S&P Dow Jones Indices index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices LLC receives compensation in connection with licensing its indices to third parties.

STANDARD & POOR'S and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("SPFS").  "Dow Jones" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").

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.

Experian and the Experian marks used herein are service marks 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:

Dave Guarino
Communications
S&P Dow Jones Indices
dave_guarino@spdji.com
201-755-5334

David Blitzer
Managing Director and Chairman of the Index Committee
S&P Dow Jones Indices
david_blitzer@spdji.com
917-376-1204

Susan Henson
Experian Public Relations
Susan.henson@experian.com
714-830-5129

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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SOURCE S&P Dow Jones Indices



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