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SFA Research Corner: Trends in Consumer Credit Health Show Signs of Improvement

article by Structured Finance Association

Consumer well-being is crucial for evaluating the risk and performance of $10 trillion of securitized products backed by consumer loans. Inflation has eroded purchasing power, leading to higher delinquencies and defaults, particularly among vulnerable borrowers. National data shows a significant rise in first-time delinquencies and personal bankruptcies in Q1 2024. However, a marked improvement in unsecured consumer loans suggests that the deterioration in consumer credit may be leveling off. Read More.