Subprime credit card ABS unlikely to return

Credit cards 230x150
By Ryan Bolger
10 Sep 2014

High supply of credit card receivables and strong performance of past deals should lead to an increase in highly liquid credit card ABS issuance, despite the asset class being left out of the liquidity coverage ratio, said bankers on Tuesday. But a standalone subprime credit card market is unlikely to develop.

“I think a lot of the risk we saw in the crisis is probably not going to come back ever again, because we moved those [subprime] customers out of the market,” Barclays treasury secured funding head Deepesh Jain said during a panel discussion ...

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