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 expected to continue 17 June 2026

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

stable, with improvement prospects strengthening as U.S.–Iran tensions move closer to United States

resolution. We expect general purpose credit card trusts to outperform private label and

subprime credit card trusts. Credit metrics were mostly positive during the May 2026

collection period (Table 1). Over the past year, 30+ days delinquency (DQ) and net Chris Flanagan

charge-off (NCO) rates for US general purpose credit cards have trended lower, while FI/MBS/CLO Strategist

BofAS

the monthly payment rate (MPR) has been relatively stable. +1 646 855 6119

christopher.flanagan@bofa.com

Theresa O'NeillTrusts expected to outperform managed portfolios ABS Strategist

We expect credit metrics for credit card ABS trust portfolios to outperform related BofAS

issuers’ managed card portfolios. Trust portfolios tend to have significantly more +1theresa.oneill@bofa.com646 855 9285

seasoning due to the lack of account additions for most but not all trusts (exceptions Alvin Fung

include CHAIT, WFCIT, CARD2, and SYNIT). Changing lending standards will likely have a ABS Strategist

greater impact on newer accounts outside the trusts. Banks reported tightening lending BofAS+1 646 855-9091

standards for credit cards in 3Q22 through 2Q25, including most terms on credit card alvin.fung@bofa.com

loans; however, in 3Q25 through 1Q26, they left them “basically unchanged,” according Altynay Davletova, CFA

to the Senior Loan Officer Opinion Survey (SLOOS).