Standard & Poor's last week issued a comment on the state of the NextCard securitizations, which have been hotly watched by the market following several enforcement actions handed down by the U.S. bank regulators, ultimately leading to a seizure (and closure) of NextBank by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.

On the whole, excess spread is still at healthy levels, S&P said, with the 20.34% portfolio yield countering the rising delinquency rate and charge-off rates (7.10% and 11.56%, respectively). "If charge-offs continue to increase, or are accelerated as a result of the adverse impact on servicing caused by the NextCard situation, the excess spread could decline significantly in future months," analysts at S&P write.

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