Though investors breathed a sigh of relief after J.P. Morgan Chase announced it would amend the Chase Credit Card Master Trust, Morgan Stanley researchers theorize that the chance of an early payout still exists, due to the C class reserve accounts that may trap excess spread away from the high-coupon fixed-rate series.

In late April, Chase moved to amend its master trust to allow for shared excess spread bolstering the 1996-3, 1999-3 and 1996-2 series that have periodically come close to triggering an early amortization. The move was met with applause - the issuer was viewed as sticking its neck out for investors at a time when such activity could be considered "implicit recourse," and threaten the entire trust's off-balance-sheet status.

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