One month after Conseco Inc. filed for Chapter 11 bankruptcy protection, the company's private label credit card trust entered early amortization last Wednesday. Triggered specifically by the bankruptcy filing rather than any deterioration in performance, the trust will pay holders back at par, despite trading at a discount throughout the final months of its shortened life.

Pricing in May 2001, the loans in the pool (21%) consisted primarily of receivables generated by Menard Inc., the third-leading home improvement retailer in the U.S. Approximately 18% of receivables came from recreational vehicle loans. Leading up to the trigger event, trading had been limited and the trust issued just one transaction, 2001-A (For details, see graphic).

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