While the ABS market usually equates thinning excess spread with deteriorating credit quality, some fixed-rate, high-coupon credit-card deals from sector benchmark Chase Credit Card Master Trust are showing three-month averages below 2%, despite obligor quality remaining near the top of the market.

Should a series post a negative three-month average excess spread, it would trigger an early amortization. Some analysts believe that J.P. Morgan - should it anticipate heading into negative territory - will act before that happens, because letting a prime, triple-A-rated credit-card securitization hit an early amortization trigger would be against the firm's own interests and arguably those of the entire credit-card market.

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