An increase in charge-off rates for credit card accounts held at the bank portfolio level is likely to spill over into credit card securitization trusts, according to a Moody’s Investors Service report.

Moody’s said that 3Q data reported by the major credit card issuers (this includes Bank of America, Capital One, Discover, Citibank, JP Morgan and American Express) show that for the first time in five years, annualized charge-off rate for non-securitized receivables has exceed that of securitized receivables.

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