Securitized public and private credit card deals totaled $69.4 billion for the five quarters beginning Jan. 1 2009, through March 31, 2010. The pace of deals rose sharply during the second half of last year, peaking during the third quarter at $27.6 billion. Securitized deals tapered off again during the first quarter of this year at $2.5 billion.
Helping to drive investment in credit card securitization in mid-2009 were the Troubled Asset Relief Program and the Term Asset-Backed Securities Loan Facility, two federal lending programs the Federal Reserve Bank and the U.S. Treasury Department introduced in late 2008 when credit markets froze as the economy stalled. The goal was to stimulate investment in securities backed by student loans, auto loans and consumer credit cards to reignite credit markets.
The government in October 2008 introduced TARP, authorizing some $700 billion for qualified securitization investments. The TALF program, introduced in November 2008, authorized up to $1 trillion for securitization deals.
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