Consumer Delinquencies Rise, Distressed Borrowers Remain Low

Recent data suggest that late payments and delinquencies, which were trending at historical lows, are creeping higher across different lending types. The Wall Street Journal cites S&P data that auto loan delinquency rates are higher than pre-pandemic delinquency rates, particularly for subprime borrowers. Notwithstanding the increase in delinquencies rates, events that would indicate serious borrower distress—like foreclosure starts and newly filed bankruptcies—remain at levels below the pre-pandemic period.

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