Tuesday, March 16, 2010

Credit cards – recap of Mon’s master trust #s

· Credit cards – recap of Mon’s master trust #s - Bankcard Performance Index performed in line with the broader economy in February. Charge-offs remained near record highs, reflecting the still elevated unemployment rate, increasing by 6bp to 10.43%. Most of the ABS issuers are optimistic that losses should start to decline in 2Q10 as labor market conditions improve. Early signs of this were evident in the delinquency trends, where both 30+ and 60+ arrears have started to inch down over the past three months to 5.66% and 4.29%, respectively. Credit support for ABS bondholders remains strong with 3-month excess spread at 8.31% in February as rising yields have compensated for the higher losses. Matthew Jozoff

Credit Card ABS Monthly Update[jp morgan research]

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