News Column

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

June 19, 2014



NEW YORK--(BUSINESS WIRE)-- 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).



    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

    Source: Kroll Bond Rating Agency


  • For more stories on investments and markets, please see HispanicBusiness' Finance Channel



    Source: Business Wire


    Story Tools






    HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters