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Another Green Shoot For The Securitization Market

There used to be a time when SPVs were nice packaging plants for credit card securitizations and the issuer didn't think have to think twice about the underlying risk. Now the loss rates are getting high enough to scare a few issuers into buying the junior pieces of their own deals to avoid losing their regular customers to some other cheap drug. The image of banks scrambling around to prevent credit card deals from hitting early redemption coverage triggers must have been on Herb Allison's mind when he was talking about declining credit market risk.
Banks come to the aid of card securitisation vehicles [FT]