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You're browsing: Archived News » 2007 HSBC » Article Title: Credit card backed securities volume increases

As Knight Vinke looks firmly at HSBC, and as HSBC announced they want to sell their Marbles credit card operation, one must wonder about the logic. As our friends at Mortgage Blues recently pointed out HSBC and others would certainly concentrate on credit card operations. Here is why:

With the subprime mortgage and home equity markets souring in recent months, bonds backed by pools of credit card debt continued to be the most popular type of securities issued in recent weeks.

Through Oct. 26, bonds backed by pools of credit card debt totaled $14.33 billion for the month, according to JPMorgan Chase & Co. research. It is only the second month this year credit-card backed securities volume exceeded $10 billion.

Credit-card backed securities accounted for 45 percent of total October asset-backed securities — bonds backed by varying assets such as credit card debt, home loans and auto loans — and have been the most popular type of asset-backed securities over the past four months

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10 Responses
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