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An interesting situation could be developing with respect to the NextCard securitizations, which are, reportedly, one month away from three consecutive months of negative excess spread. This would be the second early amortization trigger hit by the NextCard master trust. Apparently the Federal Deposit Insurance Corp. is having trouble selling the portfolio, despite reports of having narrowed the auction process down to four potential suitors. As the market is keenly aware, the FDIC exercised its prerogative to keep the trust from entering into rapid amortization when it took NextBank into receivership in February. However, unlike that incident, a three-month negative excess spread is a credit event trigger.

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