While default data for the closing month of 2019 is still a couple of weeks away from being released, S&P Dow Jones Indices and Experian previously shared their default metrics for November.
And the auto-finance metric remained below the cyclical peaks that analysts pinpointed during the past three years.
Data through November 2019 for the S&P/Experian Consumer Credit Default Indices showed the auto-default rate dropped 1 basis point on a sequential basis to settle at 1.02%. That’s also down from the high point of 2019 registered in September when the reading stood at 1.05%
The November auto default measurement also fell below the recent highs analysts spotted, including 1.11% registered in both October and November of 2017 as well as 1.09% in February of 2018.
Meanwhile, S&P and Experian reported that the November composite rate — a comprehensive measure of changes in consumer credit defaults — also rose 1 basis point to 0.94%.
Analysts indicated the bank card default rate increased 6 basis points to 2.94%, and the first mortgage default rate was unchanged at 0.77%.
S&P and Experian mentioned four of the five major metropolitan areas they track showed higher default rates in November compared to the previous month.
Miami generated the largest increase, climbing 22 basis points to 1.53%. The default rate for Los Angeles also posted a double-digit rise, increasing 12 basis points to 0.77%.
While the rate for New York climbed 7 basis points to 1.14%, the level for Dallas rose 4 basis points to 1.01%.
Conversely, the rate for Chicago softened 3 basis points to settle at 1.14%.
Jointly developed by S&P Indices and Experian, analysts noted 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.