An American Bankers Association report that credit card delinquencies rose for the second quarter in a row raised some eyebrows in the ABS market last week. However, sources say the news may be much ado about nothing, and poses no immediate threat to credit card ABS performance.

The report stated that credit card loan delinquencies reached a record high of 4.81% of accounts in 2Q05, besting last quarter's record numbers of 4.76. The statistics account for the actual number of delinquent accounts, but do not reflect delinquencies as a percentage of outstanding balances, which are at all-time lows as of August.

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