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Rising chargeoffs may signal volatility
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Wed, Nov 03, 2004
Source UPI
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NEW YORK -- Fitch Ratings said Tuesday increases in both prime and sub-prime charge offs may indicate the start of some volatility with the holiday season approaching.
Fitch in New York said the volatility does not appear to be a major impediment to the continued stability of the U.S. credit card asset-backed securities sector. Prime charge offs rose 12 basis points to 6.13 percent during the August collection period, although 2004 levels are still 64 basis points lower than a year ago. Sub-prime charge offs also treaded higher with a 66 basis point increase to 16.24 percent, yet remained 40 basis points below 2003 levels. Despite a 2 basis point drop to 6.62 percent for August, excess spread is still 17 basis points higher than last year, Fitch said. Copyright 2004 by United Press International
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