We observe counter cyclical behavior during times of stress, as opposed to the prime credit card market. They view these credit cards as an invaluable method of payment as much as they do an extension of credit. Unlike prime credit products with high balances, CFC customers view their credit card account as one of their most important financial tools in the conduct of their everyday life. CFC's experience in both recent major economic events, which included the 2008 Great Financial Crisis and the Pandemic of 2020, prove the importance of these products in aiding consumers through those difficult times."ĬFC President Steve McSorley noted, "Not only are these credit card products essential to underserved consumers, but the performance of the credit card portfolio during both financial crises illustrates the resilience of these products during times of economic stress. We are very proud to market and service such essential products to consumers so they can make purchases online and pay for everyday items without having to handle cash. However, CFC observed very robust consumer behavior, as cardholders paid down their balances throughout the Covid stimulus payment era, while using their credit cards primarily for essential purchases such as groceries and other online purchases. As we reflect on the economic environment of the past few years, in March of 2020 the fixed income investor market began shedding consumer risk backed securities, as it expected the consumer to be strained, given the spike in unemployment. Tamer El-Rayess, CFC's Chairman commented, "The Series 2022-A issuance out of CFC's master trust subsidiary was met by overwhelming investor response as the transaction was oversubscribed, reflecting continuing investor demand for fixed income securities. Proceeds from the securitization were $210 million and will be used to repay CFC's two variable funding note revolving credit facilities. The transaction was underwritten by Credit Suisse and JP Morgan. ![]() (PRNewsfoto/Continental Finance Company, LLC)Ĭonsumers view these credit card products as an invaluable method of payment as much as they do an extension of credit.
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