Amex and Capital One: Credit Card Green Shoots

Shares of American Express (AXP) and Capital One (COF), both major credit card providers, today rose 11 and 12%, respectively, after they reported reductions in credit card delinquency rates.

NEW YORK (AP) — Two major credit card providers reported more improvements in delinquency rates in June on Wednesday, an encouraging sign that borrowers are not in as bad shape as many had feared.

American Express Co. said in a regulatory filing that accounts at least 30 days past due shrunk to 4.4 percent of total loans during the month ended June 30, after falling to 4.7 percent in May and 4.9 percent in April.

Capital One Financial Corp., a major credit card issuer based in McLean, Va., said its delinquency rate among U.S. cards improved for a fourth straight month, falling to 4.77 percent from 4.9 percent in May.

This is consistent with the improvements I have been seeing for the past several months.

Comments

[Angel Martin]

Data not consistent with the "doomsday" received wisdom on Seeking Alpha, so it is ignored.

I, for one, have always been optimistic about a recovery this year. But I am always looking for significant data points inconsistent with that outcome.

2009 Jul 16 02:38 PM