Throughout 2022, consumer credit investors focused on the deteriorated performance in specific sectors and credit markets. Because mortgage performance has not been as impacted as the consumer unsecured and subprime auto markets, dv01 has split our monthly Consumer Credit Performance Report into two.
Federal Reserve data is analyzed to provide a clearer picture on consumers' financial health.
Federal Reserve Data: Consumer balance sheets remain extremely healthy, with net worth climbing across all income percentiles in recent quarters (page 4).
Consumer Unsecured: November Impairments were higher than historical trends, with Total Impairments increasing 34 bps and 30+ Impairments rising 30 bps MoM. These increases are relatively similar to July’s record pace when adjusted for higher charge-off rates (page 9).
Subprime Auto: Both 30+ Cure and 30+ Payment Made rates declined in November; both metrics have quietly declined throughout 2022 and it does not suggest a positive outlooking for the coming months (page 26).
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