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.
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).