...Gracechurch Card Programme Funding is a master trust backed by Barclays' credit card receivables, with a programme size of GBP13.4bn; the transferor generally charges off accounts after 180 days delinquency, according to its card guidelines. The trust reported a charge-off rate of 5.4% in July, up from 3.5% on the preceding month, driven by the transferor's decision to charge- off a population of accounts that were deemed unlikely to cure before they had reached 180 days delinquency. According to the investor report of the trust, 6,893 accounts with a value of GBP33.5m, were affected by the decision (8.5% of all delinquent accounts and 12.5% of total delinquent amount as of 30 June). This resulted in a one-off increase in the charge-off rate in July and also reduced charge-off rates for a length of time due to diminished non-performing stock. As the trust makes up more than half of the index weighting, the overall impact to the 3MA charge-off index was substantial, but partly offset by...
