The Coming Credit-Card Crunch
In an article titled 'The Coming Credit-Card Crunch,' Aleksandra Todorova writes for SmartMoney about an expected spillover from the subprime mortgage crisis to credit card debt. According to Todorova, 'credit-card debt, like mortgages, is sold to investors in the form of asset-backed securities. The more consumers default on credit cards, the more these investors have to lose and, much like the situation with mortgage-backed securities, they may start shying away from these investments.'
