CONVEX
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▍ STATISTICAL PROJECTION · YEAR-END 2025

Based on current macro regime conditions and credit card delinquency rate's historical behaviour in similar regimes, the model projects 2.92% by 2025-12-31 ( -0.5% from 2.94% today). The 68% confidence range is 2.75% to 3.10%; the wider 95% range is 2.57% to 3.27%. Methodology below the headline.

Central Estimate
2.92%
-0.5% vs current 2.94%
68% Range (±1σ)
2.75% to 3.10%
95% Range (±1.96σ)
2.57% to 3.27%
Central estimate uses the unconditional 25-year historical average because current regime buckets had insufficient observations to produce a reliable blend.
METHOD: CENTRAL = SAMPLE-WEIGHTED MEAN OF PER-ANCHOR CURRENT-REGIME 1Y AVERAGES, SCALED TO 63-DAY HORIZON. BAND = ±σ√T USING 12.2% ANNUALIZED REALIZED VOL.
EXPECTED TO BE 2.92% BY 2025-12-31 (LOWER FROM 2.94% ON 2025-10-01). NOT INVESTMENT ADVICE.
▍ MODEL · STATISTICAL FORECAST · 2026

Credit Card Delinquency Rate Forecast 2026

Quantitative analysis from 98 observations of Credit Card Delinquency Rate history, joined to four universal macro regime classifications. Numbers are computed, not narrated.

ByConvex Research Desk·Edited byBen Bleier·
DRCCLACBS · LAST
2.94%
AS OF 2025-10-01
Percentile · 25Y History
45.9th

Performance by Window[02]

WINDOWNANN RETANN VOLRET/VOLHIT %TOTAL
1Y5-4.55%1.27%-3.580.0%-4.55%
3Y126.54%9.02%0.7345.5%19.03%
5Y216.96%14.44%0.4855.0%40.00%
10Y403.26%12.82%0.2564.1%36.74%
All98-2.17%12.18%-0.1844.3%-41.20%

Annualized total return = (1 + total)^(1/years) - 1. Ret/Vol is the annualized return divided by annualized volatility (Sharpe-equivalent without risk-free subtraction). Hit % = pct of single periods that were positive.

Where We Are Now[03]

Percentile Rank
45.9th
1.53median 3.066.77
Current value 2.9400 on a 98-observation history going back to Jul 1, 2021.
Volatility Regime
elevated
14.73%REALIZED 30D ANN
Sits at the 85.3th percentile vs full history. Median 12.78%.

Historical Analogs[06]

Periods where Credit Card Delinquency Rate sat at a similar percentile rank to today, with what happened over the next 30 / 90 / 252 trading days. Analogs are clustered to avoid double-counting nearby dates.

DATEVALUE+30D+90D+1Y
Apr 1, 20232.75000.00%6.91%17.09%

Worst Historical Drawdown[07]

-77.40%PEAK-TO-TROUGH
Peak Apr 1, 2009 → trough Jul 1, 2021. Has not yet recovered to prior peak.
All-time high: 6.7700 on Apr 1, 2009 · Current DD from ATH: -56.57%

Largest Single-Period Moves[09]

▲ Up
  • Oct 1, 200817.50%
  • Jan 1, 200915.43%
  • Jul 1, 202212.02%
  • Apr 1, 202311.34%
  • Oct 1, 202210.24%
▼ Down
  • Jul 1, 2020-18.78%
  • Apr 1, 2021-15.43%
  • Apr 1, 2010-11.76%
  • Jan 1, 2021-10.48%
  • Jul 1, 2010-10.20%

Calendar-Month Seasonality[10]

Average single-period return aggregated by the calendar month in which the period ended.

MONTHAVG RETURNHIT %N
January0.05%45.8%24
April-0.68%45.8%24
July-0.82%41.7%24
October-0.01%44.0%25

N = 98 OBS · GENERATED 2026-05-18 09:30Z

Forecast Approach

regime implied: The current macro regime classification (Goldilocks, Reflation, Stagflation, or Deflation) dictates the expected direction and magnitude of movement, calibrated against historical regime performance.

Key Drivers & Risks

  • Default rates
  • Monetary policy
  • Economic growth
  • Risk appetite
  • Leverage levels

Historical Volatility

Asymmetric: tight in calm, explosive in stress

Scenarios That Affect This Forecast

Frequently Asked Questions

What factors could push Credit Card Delinquency Rate higher?

The primary drivers that tend to lift Credit Card Delinquency Rate depend on the current macro regime. Financial conditions indexes are the Fed's dashboard. The Chicago Fed's NFCI blends over 100 inputs spanning equity volatility, credit spreads, funding stress, and leverage. Real yields across the TIPS curve reveal the true cost of capital after inflation, while liquidity measures (reverse repo, TGA, reserves) show whether the system is flush or stressed. Together they form the transmission belt from policy rate to real economy. Convex tracks these drivers live across the Credit & Financial Stress category and flags when multiple forces align in the same direction. See the "Key Drivers & Risks" section on this page for the current list, and check the regime dashboard for how the macro backdrop is currently tilted.

What factors could push Credit Card Delinquency Rate lower?

The same transmission channels that drive Credit Card Delinquency Rate higher operate in reverse when conditions flip. The risk drivers listed above map directly to scenarios that, if triggered, would pull this metric in the opposite direction. Convex aggregates these into a scenario-weighted probability distribution rather than a point forecast, so the magnitude depends on which scenarios activate.

Where does consensus see Credit Card Delinquency Rate heading?

Rather than publish a point target that goes stale the day after release, Convex assembles consensus from the macro regime classification, active scenario probabilities, and historical base rates. Point forecasts from banks and strategists are worth reading for context, but they typically cluster around the consensus and miss the tail events that actually move markets. The scenario-weighted approach here captures that tail risk explicitly.

What is the historical range for Credit Card Delinquency Rate?

Historical ranges for Credit Card Delinquency Rate vary dramatically by regime. A level that is extreme in Goldilocks can be routine in Stagflation, and vice versa. The Historical Volatility section on this page describes the typical range and regime-specific behavior. For the full multi-decade history, visit the Credit Card Delinquency Rate chart page, which includes selectable time ranges up to five years and downloadable data.

How often is the Credit Card Delinquency Rate forecast updated?

This forecast page recalculates whenever the underlying data or regime classification changes, typically within hours of new data releases. The scenario probabilities refresh daily as the macro state is regenerated. Specific drivers listed on this page reflect the current state of the Convex regime engine, not static historical assumptions.

Is this forecast actionable for trading?

Convex forecasts are informational and educational. They describe probability distributions and regime-conditional paths rather than specific entry and exit levels. Traders and portfolio managers use them alongside other inputs including position sizing rules, risk management, and their own conviction calibration. They are not investment advice.

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Forecasts are model-based projections derived from current regime classification, scenario probabilities, and historical patterns. They are not investment advice. All investments involve risk.