National Credit Default Rates Ticked Up in November 2012 According to the S&P/Experian Consumer Credit Default Indices Four out of Five Cities Saw Default Rates Rise PR Newswire NEW YORK, Dec. 18, 2012 NEW YORK, Dec. 18, 2012 /PRNewswire/ -- Data through November 2012, 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 an increase in national default rates during the month. After hitting a post-recession low of 1.46% in September 2012, the national composite increased for the two consecutive months, posting 1.55% in October and reaching 1.64% in November. The first mortgage default rate increased from its post-recession low of 1.36% in September, to 1.47% in October reaching 1.58% in November. Auto loan default rates moved down from 1.14% in October to 1.09% in November. Bank card default rate posted the lowest post-recession rate of 3.58% in November; it was 3.68% in October. The second mortgage hit its historic low of 0.62% in November; it marginally decreased from 0.65% rate posted in October. "The national composite showed an increase in consumer credit default rates for the second consecutive month in November," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "This increase in national default rates was solely driven by an increase in the first mortgage default rate. All other loan types – auto loan, bank card and the second mortgage posted decreases in their default rates in November. "The national composite posted 1.64% in November, 9 basis points above October rate and 18 basis points above September's post-recession low. The first mortgage showed the same trend, it posted 1.58% in November, 11 basis points above the previous month's rate and 22 basis points above September's post-recession low. The first mortgage was the only product line that increased in November. While the increase in the first mortgage default rate is quite small, it bears watching since it repeats across four of the five cities we track. The other sectors all posted small declines from October to November: auto loans down 5 basis points, bank cards down 10 basis points to a new post-recession low of 3.58% and second mortgages down 3 basis points. "Four out of five cities we cover showed increases in their default rates. Dallas saw defaults slip one basis point. The increases were Miami, up 22 basis points, Los Angeles up 16, New York up 12 and Chicago higher by 7 basis points. Miami had the highest default rate at 2.66% and New York was lowest at 1.47%." The table on the next page summarizes the November 2012 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 November 2012 October 2012 November 2011 Index Level Index Level Index Level Composite 1.64 1.55 2.22 First Mortgage 1.58 1.47 2.17 Second Mortgage 0.62 0.65 1.26 Bank Card 3.58 3.68 4.91 Auto Loans 1.09 1.14 1.17 The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs: Metropolitan November 2012 October 2012 November 2011 Statistical Area Index Level Index Level Index Level New York 1.47 1.35 2.21 Chicago 1.85 1.78 2.84 Dallas 1.25 1.26 1.38 Los Angeles 1.60 1.44 2.53 Miami 2.66 2.44 4.47 Source: S&P/Experian Consumer Credit Default Indices Data through November 2012 About S&P Dow Jones Indices S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies 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 Average(SM), 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, 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 or its affiliates do not have the necessary licenses. S&P Dow Jones Indices 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. "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 firstname.lastname@example.org 201-755-5334 David Blitzer Managing Director and Chairman of the Index Committee S&P Dow Jones Indices email@example.com 917-376-1204 Susan Henson Experian Public Relations Susan.firstname.lastname@example.org 714-830-5129 Jointly developed by S&P Indices 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 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. For more information, please visit: www.consumercreditindices.standardandpoors.com. This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses. S&P Indices receives compensation in connection with licensing its indices to third parties. All information provided by S&P Indices is impersonal and not tailored to the needs of any person, entity or group of persons. S&P Indices, its affiliates and its third party licensors do not sponsor, endorse, sell, promote or manage 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 Indices' index. S&P Indices and its third party licensors are not investment advisors, and S&P Indices, its affiliates and its third party licensors make no representation regarding the advisability of investing in any such investment fund or other vehicle. A decision to invest in any such investment fund or other vehicle should not be made in reliance on any of the statements set forth in this presentation. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other vehicle. Inclusion of a security within an index is not a recommendation by S&P Indices or its third party licensors to buy, sell, or hold such security, nor is it considered to be investment advice. Exposure to an asset class is available through investable instruments based on an index. It is not possible to invest directly in an index. There is no assurance that investment products based on the index will accurately track index performance or provide positive investment returns. S&P Indices and its third party licensors do not guarantee the accuracy, adequacy, timeliness and/or completeness of any S&P Indices' index, any data included therein, or any data from which it is based, or any communication with respect thereto, including, but not limited to, oral or written communications (including electronic communications) with respect thereto. S&P INDICES AND ITS THIRD PARTY LICENSORS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE MARKS, THE INDEX OR ANY DATA INCLUDED THEREIN. S&P INDICES AND ITS THIRD PARTY LICENSORS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS IN THE INDEX OR ANY DATA INCLUDED THEREIN AND THE DISSEMINATION THEREOF. S&P Indices and its third party licensors make no warranties, express or implied, as to results to be obtained from use of information provided by S&P Indices and its third party licensors and used in this service, and S&P Indices and its third party licensors expressly disclaim all warranties of suitability with respect thereto. Without limiting the foregoing, the Indices are calculated by S&P Indices and its third party licensors based on a sampling of data reported to S&P Indices or its third party licensor from third parties, and neither S&P Indices nor its third party licensors verify the adequacy, accuracy, timeliness or completeness of such data. Neither S&P Indices nor its third party licensor guarantee that such data and/or the sampling thereof shall be representative of the rate of actual consumer credit default or of any other attribute or activity. Neither S&P Indices nor its third party licensors shall be liable for any claims or losses of any nature in connection with information contained in this document, including but not limited to, lost profits or punitive or consequential damages, even if it is advised of the possibility of same. These materials have been prepared solely for informational purposes. S&P Indices and its third party licensors make no representation with respect to the accuracy or completeness of these materials, the content of which June change without notice. The methodology involves rebalancing and maintenance of the indices that are made periodically during each year and June not, therefore, reflect real-time information. S&P Indices and its third party licensors shall not have any obligation to update any published index in light of any change to the data used to calculate such index or to provide anyone with notice of such change. Analytic services and products provided by S&P Indices are the result of separate activities designed to preserve the independence and objectivity of each analytic process. S&P Indices has established policies and procedures to maintain the confidentiality of non-public information received during each analytic process. S&P Indices and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly June receive fees or other economic benefits from those organizations, including organizations whose securities or services they June recommend, rate, include in model portfolios, evaluate or otherwise address. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P INDICES OR ITS THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE. No third party, including any sublicensee, investor, customer or user of a product, is intended to be a third party beneficiary to any agreement between or among any of licensee, S&P Indices and/or any of its third party licensors. Copyright © 2012 by Standard & Poor's Financial Services LLC. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission. S&P, S&P 500, S&P Indices, and STANDARD & POOR'S are registered trademarks of Standard & Poor's Financial Services LLC. © 2012 Experian Information Solutions, Inc. • All rights reserved SOURCE S&P Dow Jones Indices Website: http://www.consumercreditindices.standardandpoors.com.
National Credit Default Rates Ticked Up in November 2012 According to the S&P/Experian Consumer Credit Default Indices
Press spacebar to pause and continue. Press esc to stop.