Yields for the Chase Credit Card Master Trust rebounded 200 basis points to 16.01% from 13.97% previous month, the company reported last Thursday. The low ratio in the previous month was, as previously thought, due to fewer collection days and lower interchange.
Losses continued the positive trend, improving 22 basis points to 4.72% from 4.94%. As a result, excess spreads also rebounded, especially for the fixed-rate CHEMT 96-2 series increasing to 3.61% from 1.34%, CHEMT 96-3 increased to 2.59% from 0.32% and CHAMT 99-3 to 2.96% from 0.69%.
As we stated in "Chase-ing Excess Spreads," said Juliet Jones of Barclays Capital, "we believe that the market overreacted to the thin excess spreads and we maintain our view that the likelihood of early amortization is remote."