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To: patron_anejo_por_favor who wrote (197435)	10/14/2002 7:12:17 PM
From: ild	Read Replies (1) \| Respond to of 436258

SEPTEMBER MASTER TRUST DATA - COF COF released its Sept master trust data, which showed credit quality deterioration across several key metrics. As always, we caution against "noise" in the trust data. Net charge-offs rose 55 bps seq. (+44 bps yr/yr) to 4.70%. 30+day delinquencies rose 39 bps seq (+5 bps yr/yr) to 5.71%. A lower portfolio yield and an increasing weighted avg coupon rate partially led to a 99 bps seq decline in excess spread to 12.80% (for the series we track). As expected, September’s results were weak. Still, we note that credit trends still appear to be tracking slightly ahead of our expectations for the quarter (ex- auto loans-10% of COF's portfolio). We caution that higher delinquencies (in September and August), as well as managment guidance point to higher charge-offs. This rise in delinquencies and charge-offs, combined with the recent annoucement by Sears of weakness in its card business and general apprehension about the state of the consumer will likely prey on investor confidence near-term, in our view.