With consumers under increasing stress, credit card ABS performance has weakened. In anticipation of a prolonged stressed environment for consumers, investors are asking the following questions: if performance continues to deteriorate, what will this mean for credit card ABS ratings?

More specifically, how will ratings change in a scenario where chargeoffs increase 50% from the index average, to 9%, yield declines 15%, and the monthly payment rate drops 20%, simultaneously, over the next 12 months? Also, what if only one or two of these variables worsened in a given scenario?

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.