TY - JOUR T1 - The Evolution of Credit Card Structures JF - The Journal of Structured Finance SP - 9 LP - 14 DO - 10.3905/jsf.2004.426059 VL - 10 IS - 2 AU - Edward M DeSear Y1 - 2004/07/31 UR - https://pm-research.com/content/10/2/9.abstract N2 - Since the first true credit card securitization in 1986, credit card structures have evolved from a mortgage pass-through structure, tweaked to accommodate revolving credit card balances, to a multi-asset-pool structure. The interest-only period and the rapid-amortization period are two structural elements that continue to serve as the core of revolving asset structures. A standby letter of credit and reimbursement agreement, used for credit enhancement, was replaced by a loan agreement along with a cash collateral account, then a collateral investment amount, and then a collateral interest. New accounting rules, allowing issuers to treat debt securities as a sale of receivables backing those securities, facilitated issuance of notes to capital markets investors worldwide and facilitated the ?delinking? of securities providing credit enhancement from any particular securities being enhanced. Now credit card issuers are dealing with new challenges including: 1) a proposed amendment the SFAS 140 that could call into question traditional structural features essential to achieving a highly rated transaction and the reissuance of securities common with commercial paper programs; and 2) new disclosure rules for asset-backed securities (ABS) proposed by the SEC that could exclude securities issued by a trust that is backed by differ ER -