Advanta Corp.'s decision to let its securitization funding vehicle unwind and stop lending to account holders could unsettle a market for credit card-backed securities that has just started to rebound.

The plan, disclosed Monday after the market closed, may intensify credit deterioration in the Spring House, Pa., company's portfolio and expose investors in its credit card-backed bonds to greater risk of principal losses, analysts said. When an issuer stops supporting new charges, credit deterioration tends to accelerate as account holders who qualify move to competitors that offer functioning cards, leaving the riskiest customers behind.

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