Late-payment rates among U.S. borrowers rose again in the second quarter, according to a report from the New York Fed. The trend reflects a sharp increase in student loan delinquencies, which have been climbing as pandemic-era policies have expired.

Mounting liabilities are raising the stakes for an economy that has come to rely more and more on high-end consumer spending to power expansion.

Bank earnings have been largely positive in the second quarter despite concerns that tariffs would increase inflation and stifle economic activity. Payment divisions at banks reaped the rewards, too.

Historically high interest rates and falling late-payment rates suggest that credit card issuers are tightening their underwriting standards amid economic uncertainty.

The B, C and D tranches maintain minimum subordination percentages, 12.5%, 8.1% and 4.3%, respectively, allowing them to provide credit support for the class A notes.

A federal judge in Texas found that the Consumer Financial Protection Bureau had violated the CARD Act by barring banks from charging late fees for credit cards.

Amid troubling news of tariffs and layoffs, dropping delinquencies offer a rare sign of consumer health.

CEO Richard Fairbank told analysts executives have their "microscopes" out for any signs of trouble, but consumers remain "in a great place."

There is a three-year revolving period when the transaction will not make any principal payments to the notes unless an early amortization event occurs.

The buy now/pay later company beat analysts estimates on revenue and net income and is trying to get more frequent usage out of its customers.