Bond market rejects credit cards for first time in 15 years

11/6/2008 | Bloomberg

Faced with rising consumer credit card delinquencies, buyers are not interested in bonds backed by credit card payments. Top-rated card-backed securities maturing in three years traded at a spread of 475 basis points more than Libor during the week ending Oct. 30, compared with 50 basis points higher in January. Sales of credit card bonds hit zero in October, the first time since 1993.

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