The $66.4 billion scheduled to mature in credit card securitization could add an extra $14 billion to credit card ABS volumes in 2012, Wells Fargo analysts said in a report released today.
Total visible supply of credit card ABS outstanding is $162.5 billion this year with just one new issue credit card ABS transaction in December. Aggregate issuance for 2011 reached $10.9 billion in the card sector, up from just $6.2 billion in 2010.
Another source of support for credit trends will come from additional improvements in household balance sheets, according to Wells Fargo analysts.
The analysts explain that a decline in bankruptcy filings has shown some additional improvement over the past several months. "While some of this trend is likely to be seasonal in nature, we believe that consumer bankruptcy rates should see a further decline in 2012, which should lend support to credit trends in consumer ABS," analysts said in the report.