March 15, 2016 - 1:38 AM EDT
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Consumer Credit Default Rates Hold Steady in February 2016 According to the S&P/Experian Consumer Credit Default Indices

NEW YORK
, March 15, 2016 /PRNewswire/ -- Data through February 2016, 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, shows a composite rate of 0.97% in February, within one basis point of the rate in the previous two months. The bank card default rate increased four basis points in February, recording a default rate of 2.56%. Auto loan defaults reported in at 1.05% in February, up one basis point from January. The first mortgage default rate was unchanged in February, reporting a default rate of 0.84%.

Three of the five major cities saw their default rates decrease during the month of February.

Miami
reported a default rate of 1.07%, down 10 basis points from the January default rate.
Dallas
reported a default rate of 1.03%, an eight basis point decrease from the prior month.
New York
recorded a default rate of 0.97% in February, down seven basis points.
Chicago
was unchanged for February, reporting a default rate of 1.02%.
Los Angeles
was the only city to report a default rate increase, with a 0.76% default rate, up four basis points from January.  

"Low and stable consumer credit default rates confirm the positive picture of the consumer economy seen in recent data on personal income and consumption," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "Other positive indicators of the consumer economy include continued strong auto sales and rising home prices. Measures of consumer confidence and sentiment remain at high levels after slipping a bit in January and February. Consumer credit usage continues to expand, though January's most recent data showed a somewhat slower pace than in the 2015 fourth quarter."

"Recent gains in the labor market -- a large jump in job growth in February, an unemployment rate at 4.9% and the low level of weekly initial unemployment claims -- all contribute to good consumer credit conditions. Low and falling gasoline prices imply extra spending money for many consumers, helping both spending and credit issues. However, there could be some risk here – crude oil prices fell to a recent low last month before rebounding. Between February 11th and March 11th, oil prices moved from $26.21 to$38.50/barrel, a rise of 47%. If this is sustained, it could dampen consumer spending somewhat. While inflation is largely absent from current economic reports, the same strong job growth boosting consumer spending may be setting the stage for future price increases or further action from the Fed to raise the interest rate. For now, low default rates and a strong consumer economy are in place."

The table below summarizes the February 2016 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

February 2016
 Index Level

January 2016
 Index Level

February 2015
 Index Level





 Composite

0.97

0.96

1.12



 First Mortgage

0.84

0.84

1.00



 Second Mortgage

0.60

0.65

0.66



 Bank Card

2.56

2.52

2.84



 Auto Loans

1.05

1.04

1.06



Source: S&P/Experian Consumer Credit Default Indices



Data through February 2016




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








Metropolitan     
Statistical Area

February 2016
 Index Level

January 2016
 Index Level

February 2015
 Index Level





New York

0.97

1.04

1.14



Chicago

1.02

1.02

1.18



Dallas

1.03

1.11

1.17



Los Angeles

0.76

0.72

0.83



Miami

1.07

1.17

1.17



  Source: S&P/Experian Consumer Credit Default Indices



Data through February 2016




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 Average, 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
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making.

We also help people to check their credit report and credit score, and protect against identity theft. In 2015, we were named by Forbes magazine as one of the "World's Most Innovative Companies."

We employ approximately 17,000 people in 37 countries and our corporate headquarters are in

Dublin, Ireland
, with operational headquarters in
Nottingham, UK
;
California
, US; and
São Paulo, Brazil
.

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 March 31, 2015, was US$4.8 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, "Inside Experian."

For more information:

Soogyung Jordan
Communications
S&P Dow Jones Indices
soogyung.jordan@spdji.com
(+1) 212-438-2297

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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Without limiting the foregoing, the Indices are calculated by S&P Dow Jones Indices and its third party licensors based on a sampling of data reported to S&P Dow Jones Indices or its third party licensor from third parties, and neither S&P Dow Jones Indices nor its third party licensors verify the adequacy, accuracy, timeliness or completeness of such data.  Neither S&P Dow Jones 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 Dow Jones 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 Dow Jones Indices and its third party licensors make no representation with respect to the accuracy or completeness of these materials, the content of which September change without notice. The methodology involves rebalancing and maintenance of the indices that are made periodically during each year and September not, therefore, reflect real-time information. S&P Dow Jones 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. 

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/consumer-credit-default-rates-hold-steady-in-february-2016-according-to-the-spexperian-consumer-credit-default-indices-300236221.html

SOURCE S&P Dow Jones Indices

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Source: Equities.com News (March 15, 2016 - 1:38 AM EDT)

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