Wednesday, November 19, 2008


Michael sez: This is a big shoe dropping. American Express is a big fish. It's "The Card" you know. It's for the high up mucky mucks. Or those who think they are high up. Apparently those with good credit ratings can screw up also! Still loking for a good business idea. Maybe that idea of Barterville is gonna be a hot deal after all. Got to look into it a little better.
American Express Delinquencies Hit 4.4%, Defaults 6.96%

Bloomberg is reporting American Express Delinquencies Rise to 4.4 Percent.

American Express Co. had its highest monthly increase in credit-card delinquencies on record in October as jobless claims rose, according to FBR Capital Markets. Late payments rose 35 basis points to 4.4 percent last month, according to a report yesterday from FBR analysts led by Scott Valentin in Arlington, Virginia. The default rate increased 33 basis points to 6.96 percent, the highest since November 2005, the report said.Becoming a bank won't relieve American Express from having to borrow money in the bond market, the analysts said.

There were no sales of bonds backed by credit-card payments in October, the first time since 1993, when the asset-backed securities market was in its infancy. Yields on top-rated credit card bonds relative to benchmark interest rates reached a record high of 525 basis points more than the London interbank offered rate, or Libor, last week, according to Bank of America Corp. data.

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