Fitch: Consumer Prudence Keeps Credit Card Asset Performance on Upswing
Late payments continued to ease, also hovering at historical low levels, leaving chargeoff rates steady and delinquency rates at new lows.
'Improvements in the labor market heading into the summer helped keep credit card ABS metrics near their records,' says Herman Poon, Director in Fitch's Asset-Backed Securities group.
An improvement in yield performance, coupled with modestly stable losses, gave way to new highs for excess spread in 2Q15. Current levels more than doubled in performance from the crisis at end of 2009.
Fitch expects credit card ABS prime gross yield and prime MPR to improve in the short term, in line with seasonal trends. Prime 60+ day delinquencies are expected to decline near historical lows. Prime chargeoffs are expected to increase slightly as this metric slowly normalizes.
The full report, 'Credit Card Index: Movers & Shakers - North America,' is available at www.fitchratings.com.
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