S&P/Experian: Auto Loan Default Index Opens 2013 Marginally Higher
February 20, 2013
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NEW YORK — Despite marginal deterioration in January, the
auto loan portion of the S&P/Experian Consumer Credit Default Indices
showed levels still better than a year ago.
S&P and Experian reported Tuesday that auto loan default rates increased in January to 1.10 percent, up from the December level of 1.09 percent.
However, the latest reading still is lower than a year ago. To begin 2012, the rate stood at 1,27 percent.
The national composite showing a comprehensive measure of changes in consumer credit defaults came in at 1.63 percent in January, down from 1.72 percent in December. Like the auto reading, the composite index settled well below what analysts spotted last January when it was 2.16 percent.
The other credit segments analysts track by and large showed positive trends.
The first mortgage default rate moved down to 1.58 percent in January from 1.68 percent in December. The second mortgage rate was unchanged at 0.69 percent since December. The bank card default rate hit the lowest post-recession pace of 3.41 percent in January as it was 3.53 percent in December.
"The beginning of 2013 continued the positive trend in consumer credit quality that we witnessed in 2012," said David 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," Blizter continued.
Looking at the top five metropolitan areas, three of the five cities analysts cover showed decreases in their default rates in January. Here is the rundown:
|City|| Jan. 2013
| Dec. 2012
| Jan. 2012
| New York
| Los Angeles
"All five cities remain below default rates they posted a year ago in January 2012," Blitzer said.
Jointly developed by S&P Indices and Experian, Blitzer reiterated the S&P/Experian Consumer Credit Default Indices are published monthly with the intent to accurately 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.
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