NEW YORK -

While Kroll Bond Rating Agency (KBRA) described credit performance during the July collection period as “solid,” the data through August released by S&P Dow Jones Indices and Experian earlier this week showed that auto defaults remain on the rise.

The auto portion of the S&P/Experian Consumer Credit Default Indices climbed for the second month in a row, ticking up by 6 basis points on a sequential basis to land at 0.53%. The latest reading is 13 basis points higher than the June figure that set an all-time low at 0.40%.

A year ago, auto defaults sat at 0.98% and have been below 1% each month so far in 2020, according to data compiled by S&P Dow Jones Indices and Experian.

Meanwhile, the newest composite rate, which represents a comprehensive measure of changes in consumer credit defaults, edged up 1 basis point in August to come in at 0.67%.

As the bank card default rate fell 41 basis points to 3.45%, analysts noted that the first mortgage default rate ticked 4 basis points higher to 0.48%.

As they do on a monthly basis, S&P Dow Jones Indices and Experian also examined data from the five largest metropolitan areas, finding that four of them posted higher default rates in August compared to the previous month.

Miami recorded the largest increase, rising 16 basis points to 1.99%. New York moved 10 basis points higher to 0.96%, while Dallas increased 4 basis points to 0.65%.

The rate for Los Angeles inched up 1 basis point to 0.76%.

Chicago was the only one of these large metro areas to record a decrease in August, dipping 1 basis point to 0.65%.

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.