Received the May 2002 Credit Card Master Trust Data Todayâ?¦. Credit quality remains a concern across the industry. Recommend: Capital One Financial in the credit card sector. The company has achieved rapid internal growth due to its proprietary technology and highly focused marketing strategies. Capital One's consumer credit card pricing matrices represent the industry's gold standard and allow the company to expand its product line while maintatining margins. Capital one is the only credit card company to successfully risk price across the entire credit spectrum (from super-prime to secured) because of its proprietary credit modeling. MBNA: MBNA is the most established and largest of the public credit card companies and is only mono-line card issuer that focuses exclusively on the slower-growing super-prime and prime markets. American Express: AE remains the premier brand in financial services. Metris: Metris is an information-based direct marketer of consumer credit products, extended service plans and enhancement products and services to sub-prime consumers. Metris: Investment Risks: 1. An increase in overall credit delinquencies and charge-offs as a result of the company's focus on the sub-prime market. 2. A decrease in operating profitability stemming form increased competition. 3. A liquidity crunch due to Metris's near-exclusive reliance upon securitzation financing for funding. Providian: CY 2001 was a difficult year for the company, marked by rapidly deteriorating credit quality and ongoing liquidity concerns. Providian is currently undergoing a strategic reorganization involving the termination of lending to sub-prime customers, the sales of strategic assets to improve liquidity and the proposed exclusive marketing of lending products to the highly competitive prime and super-prime segments. MY 2 cents: If you have a Providian card, call and ask for an APR reduction ASAP. If you can get around current prime your account might not be liquidity or sold off. CapOne is listed as Buy so invest. Get a CapOne card before they become a MBNA.
