Credit Card Industry

[(former)FormerSanDiegan]

I suppose I shouldn’t take the word collateral literally.

[eyePod]

Or “tranche” for instance. This must be said with a french accent, best accomplished by leaning one’s head back until nasal congestion occurs, then speaking. It’s french for “slice”, but I guess tranche makes the banker sound more sophisticated.

[eyePod]

Or “tranche” for instance. This must be said with a french accent, best accomplished by leaning one’s head back until nasal congestion occurs, then speaking. It’s french for “slice”, but I guess tranche makes the banker sound more sophisticated.

[eyePod]

Or “tranche” for instance. This must be said with a french accent, best accomplished by leaning one’s head back until nasal congestion occurs, then speaking. It’s french for “slice”, but I guess tranche makes the banker sound more sophisticated.

[HereWeGo]

That is a bit of a head scratcher.

I wonder how the phenomenon of depreciating collateral is handled. Autos and residential RE would seem to fall in that category, although the auto depreciation is more predictable to be sure.

[HereWeGo]

That is a bit of a head scratcher.

I wonder how the phenomenon of depreciating collateral is handled. Autos and residential RE would seem to fall in that category, although the auto depreciation is more predictable to be sure.

[HereWeGo]

That is a bit of a head scratcher.

I wonder how the phenomenon of depreciating collateral is handled. Autos and residential RE would seem to fall in that category, although the auto depreciation is more predictable to be sure.

[eyePod]

One big difference is that credit card debt is HIGHLY profitable. I don’t think it would be so simple if suddenly there was a 200% spike in people failing to pay their bill. That is what is happening in mortgages right now.

[eyePod]

One big difference is that credit card debt is HIGHLY profitable. I don’t think it would be so simple if suddenly there was a 200% spike in people failing to pay their bill. That is what is happening in mortgages right now.

[eyePod]

One big difference is that credit card debt is HIGHLY profitable. I don’t think it would be so simple if suddenly there was a 200% spike in people failing to pay their bill. That is what is happening in mortgages right now.

[bsrsharma]

I suppose I shouldn't take the word collateral literally.

 Yes; In the upside down world of financial engineering, debt is asset. Your continued indebtedness IS the collateral. Almost like slave trade!

[bsrsharma]

I suppose I shouldn't take the word collateral literally.

 Yes; In the upside down world of financial engineering, debt is asset. Your continued indebtedness IS the collateral. Almost like slave trade!

[bsrsharma]

I suppose I shouldn't take the word collateral literally.

 Yes; In the upside down world of financial engineering, debt is asset. Your continued indebtedness IS the collateral. Almost like slave trade!

[Arraya]

Thanks for the explanation. It is very strange when you think about it.

How big is the ABS market?

Just looking at the fall out from a small portion of homeowners not paying there mortgages. I guess if people really wanted a revolution they should just stop paying their bills all at once. That would shake things up…

[Arraya]

Thanks for the explanation. It is very strange when you think about it.

How big is the ABS market?

Just looking at the fall out from a small portion of homeowners not paying there mortgages. I guess if people really wanted a revolution they should just stop paying their bills all at once. That would shake things up…

[Author]

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