Credit card holders are keeping a lid on spending, and banks are flush with cheap deposits to fund new accounts. These might not seem like the ideal conditions for credit card securitization to take off, but that's just what is happening.

In the first nine months of 2012, issuance of credit card ABS reached $29 billion, nearly double the $16.2 billion issued for all of 2011, according to data compiled by Standard & Poor's. By comparison, revolving debt fell at a 6.6% annual rate in July, following an annualized drop of 4.4% in June, according to data from the Federal Reserve. (Revolving debt was flat at about $815 billion between May and July before adjusting for seasonal factors.) In fact, at a seasonally adjusted $851 billion, revolving debt is about where it was when it pulled out of a sharp contraction in early 2011.

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