Fitch: Stronger Labor Markets A Plus for U.S. Credit Card ABS.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Falling jobless claims Initial Jobless Claims is a report issued by the U.S. Department of Labor on a weekly basis. This report tracks how many people have filed for unemployment benefits in the previous week. It is a good gauge of the U.S. job market. are indicating a stabilizing labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience , which is good news for U.S. credit asset-backed securities, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. in its latest edition of 'Credit Card Movers & Shakers'. 'Initial jobless claims fell to 317,000, which bodes well for consumer sentiment and personal income going forward even as the Federal Reserve continues to raise rates,' said Richard Drason, Director, Fitch Ratings. 'With Fitch's expectation of a 4% federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve target rate by the end of 2005 taken into account, Fitch expects continued stable performance trends for prime credit card ABS, while the subprime segment's Outlook remains Negative.' The improving labor market also appears to be having a positive effect on bankruptcy filings as the 2004 total of 1,439,010 is 4.2% lower than the same time last year, this after Fitch reported 116,952 filings for November. 'Fitch expects bankruptcy filings to close lower in 2004 to approximately 1.59 million as households benefit from the improving labor market and low interest rate environment,' said Drason. Prime chargeoffs increased 35 basis points (bps) to 6.08% for the October collection period, though it is still down 18 bps from this time last year. Subprime chargeoffs also climbed to 14.94%, but despite the 24 bp climb, is still 236 bps below last year's levels. Excess spread rose 19 bps to 6.81%. The latest edition of 'Credit Card Movers & Shakers,' which covers the latest trends in the credit card ABS market, is available on the Fitch Ratings web site at 'www.fitchratings.com' in the 'ABS' sector page under 'Newsletters'. |
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