In the wake of the near early amortization of the high-coupon, fixed-rate Chase Credit Card Master Trust 1996-3 ABS, investors are asking for more spread in return for this perceived new risk for credit card ABS. But as there was no early am, most analysts play down this threat, noting that current master trust technology makes the question anachronistic.

While spreads in the credit card sector have widened on regulatory fears, the debate is whether early-amortization risk is properly accounted for in credit card ABS.

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