by Calculated Risk on 8/04/2008 10:30:00 PM

From the WSJ: Credit-Card Bonds Fight A Tougher Debt Market

Investors are growing wary of bonds backed by credit-card payments, jamming up another debt market ... Rising defaults on credit-card payments, coupled with a bleaker economic outlook, are spooking investors ... with risk premiums on ... deals widening by as much as 0.10 to 0.25 percentage point in the past month.

Banks had already started tightening lending standards (see figure 4 panel 1 of May Fed Loan Officer Survey) on credit cards during the first half of 2008, but this probably means higher rates and even tighter lending standards.

The July survey of loan officers will be released soon (usually a few days after the Fed meeting). It will be interesting to see if more banks are tightening standards on credit cards.