These trajectories are both consistent with our revised expectation for the charge-off rate index to peak in the second quarter of 2010 at about 12 percent, assuming an unemployment rate peak close to 10 percent in the first half of 2010," the report said.
The charge-off rate for accounts assumed to be bad debts increased to a new high in April for the fifth consecutive month, settling at 9.97 percent, the report said.
"After tacking on another 60-plus basis points in April, the index charge-off rate is now almost 60 percent higher than a year ago," the report said.
"This pace of rising charge-offs is unprecedented as year-over-year changes continue to surpass the magnitude of either increases or decreases experienced during any previous period," the report said.
"We anticipate that by mid-year delinquency rates will again be on the rise in concert with a deteriorating employment picture into 2010," the report said.