ABS Alert: Credit card ABS–credit & collateral trends

Research evidence excerpt

ABS Alert: Credit card ABS–credit & collateral trends

Accessible version

ABS Alert

Credit card ABS–credit & collateral trends

Stable performance in early 2026 15 May 2026

We expect credit metrics for general purpose credit card trusts to remain relatively Securitized Products Strategy

stable, although our view for possible improvement as the year progresses still remains United States

less certain due to the potential impacts of the Middle East conflict. We expect general

purpose credit card trusts to outperform private label and subprime credit card trusts.

Credit metrics were mostly positive in April (Table 1). During 1Q26, our charge-off index Chris Flanagan

increased at a modest pace while our delinquency (DQ) and monthly payment rate (MPR) FI/MBS/CLO Strategist

BofAS

indices were relatively stable. This compares to 2025 when our charge-off index +1 646 855 6119

decreased at a modest pace while our DQ and MPR indices were relatively stable, christopher.flanagan@bofa.com

although the MPR picked up towards the end of the year. Relatively strong household Theresa O'Neill ABS Strategist

balance sheets, slowing growth in consumer debt, and past periods of tighter standards BofAS

have supported performance. +1theresa.oneill@bofa.com646 855 9285

Trusts expected to outperform managed portfolios AlvinABS StrategistFung

We expect credit metrics for credit card ABS trust portfolios to outperform related BofAS+1 646 855-9091

issuers’ managed card portfolios. Trust portfolios tend to have significantly more alvin.fung@bofa.com

seasoning due to the lack of account additions for most but not all trusts (exceptions Altynay Davletova, CFA

include CHAIT, WFCIT, CARD2, and SYNIT). Prior loosening of lending standards will likely Int'lMLI MBS/(UK) ABS Strategist