Kroll Bond Rating Agency Releases First Quarter 2014 U.S. Consumer Credit Update

NEW YORK--()--Kroll Bond Rating Agency (KBRA) released the first quarter 2014 U.S. consumer credit update report today. The report highlights trends within the U.S. economic and consumer landscape and provides insight into the potential impact of these trends on the performance of consumer asset-backed securities.

Highlights Of this Quarter’s Report:

  • Overall unemployment levels were stable in the first quarter of 2014 and have subsequently declined
  • Unemployment for younger cohorts remains high particularly for the 20-to-24 year old cohort
  • Temporary employment continues to rise which bodes well for the unemployment rate
  • Personal income growth has remained sluggish in the first quarter of 2014
  • Consumer debt levels increased for the third consecutive quarter but remain below peak levels
  • Student loan balances continued to exhibit strong growth
  • Auto loan balances have exhibited growth while credit card balanced have decreased
  • Mortgage debt levels grew slightly, remaining below peak levels and could continue to grow with the passage of new rules for securitized mortgages that would make more credit available
  • Consumer confidence improved from last quarter with current levels high compared to the last few years

Overall, we find that consumer credit quality remains stable, although income and employment growth have been sluggish while debt levels have grown for the third consecutive quarter. Although interest rates remain low, there is speculation that the Federal Reserve will continue to ease its ongoing stimulus efforts.

Please visit www.krollbondratings.com to view the report, First Quarter 2014 U.S. Consumer Credit Update.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical:
Kroll Bond Rating Agency
Rosemary Kelley, 646-731-2337
Managing Director
rkelley@krollbondratings.com
or
William Carson, 646-731-2405
Director
wcarson@krollbondratings.com
or
Yuting Zhang, 646-731-2406
Associate
yzhang@krollbondratings.com

Contacts

Analytical:
Kroll Bond Rating Agency
Rosemary Kelley, 646-731-2337
Managing Director
rkelley@krollbondratings.com
or
William Carson, 646-731-2405
Director
wcarson@krollbondratings.com
or
Yuting Zhang, 646-731-2406
Associate
yzhang@krollbondratings.com