Performance Report: Consumer Unsecured & Subprime Auto Loans, December 2022

Quick Insights

• Federal Reserve Data: Consumer debt is primarily used to finance durable asset purchases rather than smaller ticket credit card purchases (page 4).

• Consumer Unsecured: Charge-offs rose to its highest levels. When charge-offs were substantially below their peak, impairment increases were less meaningful; however, with charge-offs above pre-COVID averages, underlying impairment trends are even worse than the total numbers suggest.  (page 14).

• Subprime Auto: While charge-offs rose—largely in line with seasonal behavior—they are still below pre-COVID levels, but the difference is shrinking (page 28).