11.18.22
This issue of the SFA Research Corner draws from the recent FED Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) which showed stronger demand for credit card loans even as banks tighten access to credit for borrowers with lower credit scores. While market volatility and inflationary concerns have pushed credit spreads wider, investor demand for credit card ABS has held steady due, in part, to the asset class’s strong performance. So far in 2022, issuance surpassing $27 billion (compared to $18 billion in 2021) is driven by maturing bonds and new receivables stemming from continued robust loan demand.