Number: RL34393
Title: The Credit Card Market: Recent Trends, Funding Cost Issues, and Repricing Practices
Authors: Darryl E. Getter, Government and Finance Division 
Abstract: This report examines developments in the revolving credit market, including recent trends in usage, funding, and repricing practices. Descriptive data that document recent U.S. household experience with credit card usage and delinquency information is presented. Next, the funding of credit cards, with a particular focus on the securitization process, is discussed. Credit originators are increasingly using securitization to fund revolving credit because this method minimizes the costs to fund these loans. There are payoff and default risks, however, that tend to increase funding costs for future credit card loans. An overview of credit card repricing practices is presented followed by a summary of possible policy responses.
Pages: 14
Date: June 12, 2008