Performance Report: Consumer Unsecured and Subprime Auto, October 2024

Quick Insights

• Bureau of Labor Statistics ("BLS") Consumer Expenditure Survey: According to the last month's release of 2023 data, spending on essentials has declined since 2020, driven by reduced housing costs, while education expenses have risen post-COVID

• TransUnion Data: September saw the strongest Auto and Bank Card performance of 2024, with the Northeast, Midwest and Mountain regions outperforming other regions.

• Hurricane Update: Impairments in hurricane-affected regions were initially 50 bps higher than non-impacted areas but have since moderated to 35 bps higher.

• Consumer Unsecured: October’s Impairment rates improved significantly, with prepayment rates seeing the largest monthly increase in years.

• Subprime Auto: Loans with higher LTVs continue to see elevated charge-off rates, with severity reaching record highs near 55%.