Press

•  Press Releases •  Kaulkin Ginsberg In The News

Press

---

Press Releases

Increased Charge-Off Rates Spur Increase in Kaulkin Ginsberg Index

1Q 2007 Index Marks Encouraging Sign for Accounts Receivable Management Firms

May 15, 2007: BETHESDA, MD - The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, has increased 2.5% to 1349.8 during the first quarter of 2007.  The KGI is up 10.4% from 1222.4 at the same time a year ago.  While the significant annual increase in the index is explained by events that occurred in the ARM industry in 2006, modest 1Q growth is largely attributed to only minor changes in six of the seven variables used to calculate the index.

The KGI’s most significant fluctuation in 1Q 2007 is the increase in the charge-off rate for all loans and leases, which rose from 0.42 percent to 0.51 percent during the first quarter of 2007.  This surge marks an encouraging sign for ARM companies.  “As creditors charge-off more delinquent accounts, demand rises for collection agencies to assist in converting those receivables into cash, or for the debt buying market to capitalize on a greater supply of distressed debt portfolios available for purchase,” said Michael Klozotsky, a Kaulkin Ginsberg Research Associate.     

The Index’s changes in Q1 2007 were caused by the following factors:

Variable	March 2007 *	Q1 Change *	Effect on KGI *
Unemployment Rate	4.4%	2.9%	Up
Federal Funds Rate	5.26%	0.4%	Up
Charge-off Rate	0.51%	21.4%	Up
Outstanding Consumer Credit	$2.425T	1.0%	Up
Total Market Cap of ARM Stocks	$2.19B	1.2%	Up
Bankruptcy Filings	177,599	-1.4%	Down
Consumer Price Index	205.4	1.8%	Up
* See “How is the KGI Calculated,” http://www.kaulkin.com/research/kgi/calculate.cfm

For more information about the Kaulkin Ginsberg Index, see www.kaulkin.com/research/kgi or call Michael Klozotsky at 301-907-0840 ext. 123.

About Kaulkin Ginsberg Company
Kaulkin Ginsberg is the leading strategic advisor for accounts receivable management (ARM). For ARM service providers, our value-add services focus on analysis, growth, and exit strategies. For credit grantors, our focus is on optimizing receivables management strategies.  Kaulkin Ginsberg's media division publishes the most popular sources of timely industry news and information such as insideARM.com(TM) and The ARM Insider(TM).Kaulkin Information Systems creates secure and affordable workflow, document, and business process management technologies Read more about Kaulkin Ginsberg at www.kaulkin.com.