Standard & Poor's (S&P) and Experian have teamed to launch a series of consumer credit default indices in the U.S. The S&P/Experian Consumer Credit Default Indices, to be launched May 18, will seek to measure the balance-weighted proportion of consumer credit accounts that go into default for the first time each month.
Unlike other publicly released metrics that recount previously defaulted loans or that measure delinquency rates only on securitized loans, the new indices will be based on a broad cross-section of the entire U.S. consumer credit population, the companies say.
The S&P/Experian Consumer Credit Default Indices will consist of four headline indices as determined by loan type, and a composite index: S&P/Experian Auto Default Index, S&P/Experian First Mortgage Default Index, S&P/Experian Second Mortgage Default Index, S&P/Experian Bankcard Default Index and S&P/Experian Consumer Credit Default Composite Index. The balance-weighted Composite Index will measure default rates across all four loan types.
Additionally, indices by geography (at the metropolitan statistical area, state, census division and census region levels) will be available, as well as custom indices that can be created based on specific client requirements.
The indices will be calculated based on data extracted from Experian's consumer credit database, which covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.