ABS Alert: Credit card ABS–credit & collateral trends

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ABS Alert: Credit card ABS–credit & collateral trends

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ABS Alert

Credit card ABS–credit & collateral trends

Stable performance to continue 17 July 2026

Overall, we expect somewhat softer credit performance across most consumer debt and Securitized Products Strategy

consumer related ABS, with increasing prospects for stabilization as the year progresses United States

(see ABS Weekly dated 26 June 2026). For credit cards, we expect credit metrics for US

general-purpose credit card trusts to remain relatively stable reflecting continued

strength in the employment situation and relatively tight credit standards for cards. We Chris Flanagan

expect general purpose credit card trusts to outperform private label and subprime FI/MBS/CLO Strategist

BofAS

credit card trusts. Credit metrics were mostly positive during the June 2026 collection +1 646 855 6119

period (July payment date) (Table 1). christopher.flanagan@bofa.com

Theresa O'Neill

Trusts expected to outperform managed portfolios ABSBofASStrategist

We expect credit metrics for credit card ABS trust portfolios to outperform related +1theresa.oneill@bofa.com646 855 9285

issuers’ managed card portfolios. Trust portfolios tend to have significantly more Alvin Fung

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

include CARD2, CHAIT, SYNIT, and WFCIT). Any changes in lending standards will likely BofAS+1 646 855-9091

have a greater impact on newer accounts outside the trusts. According to the Senior alvin.fung@bofa.com

Loan Officer Opinion Survey (SLOOS), banks reported tightening lending standards for Altynay Davletova, CFA

credit cards in 3Q22 through 2Q25; however, in 3Q25 through 1Q26 they reported Int'lMLI MBS/(UK) ABS Strategist