Credit Card ABS Monthly Update

Bankcard ABS performance in December was within expectations, although mixed
across issuers. The charge-off rate on our aggregate index decreased by 54bp to
9.34%, but four out of nine issuers reported loss increases. 3-month average excess
spread continued to climb, up 71bp to reach 8.35%. Rising yields, up 80bp to
21.57% in December, have helped build the excess spread cushion. The index
payment rate also improved to 19.24% from 17.35% the previous month. 30+
delinquencies declined 21bp to 5.72%, while 60+ decreased by 8bp to 4.32%. In
the Retail Card sector, four out of five trusts recorded lower charge-offs in
December than in November (HPLCC was the exception, where losses were up a
mere 1bp and the rest has not yet reported).


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