National Credit Default Rates Ticked Up in November 2012 According to the S&P/Experian Consumer Credit Default Indices

Tue Dec 18, 2012 9:39am EST

* Reuters is not responsible for the content in this press release.

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/pdfnews/pdfnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20121218:nPnNY31436

Four out of Five Cities Saw Default Rates Rise
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
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 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
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.