Originally Posted by
banquero
This. Chase Issuance Trust has billions (not an exaggeration) of asset backed securities linked to credit card receivables floating out in the markets. They have a 1.1 billion dollar deal coming later this month. I think people underestimate how much money Chase makes on this.
I think people on this board forget that the average american carrys a balance month to month. Average utilization on most of these trusts are around 15%. JP Morgan Chase's profit margin is about 27%. Just because we are winning at this game doesnt mean Chase isn't winning as well.
As long as I don't pay interest and lose money, I'm all for win-wins. I mean, If Chase lets me transfer miles 3:1 (3% on travel) - which is a great deal for me - I don't care if they also win and get a discount for buying millions of miles. That is basically a good way for all of us simple people to get a group discount from United/BA/Southwest...