U.S. consumers squeezed by higher prices and job losses are falling behind on credit-card payments, undermining the value of credit-card securities. Citigroup lost $176 million in the second quarter packaging credit-card loans into securities. The largest U.S. credit-card lender completed fewer deals and was forced to mark down its own $9 billion store of the debt instruments. Credit-card securitizations generated $3.5 billion in revenue in the past three years.

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