National Credit Default Rates Remain at Historical Lows in July 2014 According to the S&P/Experian Consumer Credit Default Indices - FOX 18 Quad Cities News and Weather

National Credit Default Rates Remain at Historical Lows in July 2014 According to the S&P/Experian Consumer Credit Default Indices

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SOURCE S&P Dow Jones Indices

Four of the Five Cities Saw Default Rates Decrease in July 2014

NEW YORK, Aug. 19, 2014 /PRNewswire/ -- Data through July 2014, 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 slight decline in default rates. The national composite posted 1.01% in July, down one basis point from last month. The composite's default rate remains the lowest in over 10 years of history. After nine consecutive months of declines, the first mortgage default rate fell to 0.88%. Auto saw its rate remain unchanged at 0.96% and is only four basis points above its historical low. The bank card rate declined 16 basis points to 2.86%.

"Consumer credit default rates dipped slightly below last month's rate," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "At just above one percent, default rates remain at historical lows. Mortgage default rates have been trending down while Auto and Bank Card are a bit higher than their historical lows set in April and March. Driven by mortgages, household debt decreased in the second quarter of  2014. Non-housing debt rose slightly in the second quarter. In the latest Federal Reserve survey of lending standards, a small portion of banks reported some easing of standards while most banks reported no change.

"Los Angeles dropped to its lowest default rate of 0.66%. Dallas saw its default rate decline by seven basis points and is only a few basis points away from its historical low set in May 2014. Chicago and Miami are at their lowest default rates since 2006. Miami continues to maintain the highest default rate of 1.51% while Los Angeles posted the lowest default rate of 0.66%. All five cities – Chicago, Dallas, Los Angeles, Miami and New York – remain below default rates seen a year ago."

The table below summarizes the July 2014 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

July 2014
 Index Level

June 2014
 Index Level

July 2013
 Index Level


 Composite

1.01

1.02

1.35

 First Mortgage

0.88

0.89

1.25

 Second Mortgage

0.52

0.57

0.54

 Bank Card

2.86

3.02

3.22

 Auto Loans

0.96

0.96

1.03

                             Source: S&P/Experian Consumer Credit Default Indices

                             Data through July 2014



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

Metropolitan     
Statistical Area

July 2014
 Index Level

June 2014
 Index Level

July 2013
 Index Level


New York

1.14

1.13

1.52

Chicago

1.17

1.24

1.75

Dallas

0.80

0.87

0.97

Los Angeles

0.66

0.75

1.56

Miami

1.51

1.68

2.06

                             Source: S&P/Experian Consumer Credit Default Indices

                             Data through July 2014



About S&P Dow Jones Indices 
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, 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 AverageTM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset 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

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC, a part of McGraw Hill Financial. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any 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 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 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 2014 was US$4.8 billion. Experian employs approximately 16,000 people in 39 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.

For more information:

Dave Guarino 
Communications 
S&P Dow Jones Indices 
dave.guarino@spdji.com 
(+1) 212-438-1471

David Blitzer 
Managing Director and Chairman of the Index Committee 
S&P Dow Jones Indices 
david.blitzer@spdji.com 
(+1) 212-438-3907

Jordan Takeyama 
Experian Public Relations 
jordan.takeyama@experian.com  
(+1) 714-830-7561

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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