Beleaguered monoline credit card issuer The Metris Companies went from the frying pan into the fire last week, as all three rating agencies have now taken action on its credit card ABS. The actions prompted some researchers to start the vigil, recommending investors stay away from Metris Master Trust paper coming due in more than one year.

Already inflated spreads widened throughout last week on the news, with some 2000-3 senior notes due Oct 2005, paying a coupon of 26 basis points over one-month Libor, quoted late in the week in the 180-185 basis point bid and 220-225 basis point ask ranges. Triple-B rated notes closed last week quoted in the 2000 basis point area over one-month Libor, out from 1000 to 1100 basis points over as recently as last Monday.

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