We observe counter cyclical behavior during times of stress, as opposed to the prime credit card market." Mr. Unlike prime credit products with high balances, CFC customers view their credit card account as one of their most important financial tools in the conduct of their everyday life. El-Rayess illustrate the resilience of our products during times of economic stress. CFC's experience in both recent major economic events, the 2008 Great Financial Crisis and the Pandemic of 2020, prove the importance of our products to aid our customers through those difficult times," added El-Rayess.ĬFC President Steve McSorley noted, "Not only is our credit card product essential to our underserved customer, but the performance of our portfolio during both financial crises highlighted by Mr. We are very proud to offer an essential product to our customers so they can make purchases online and pay for everyday items without having to handle cash. ![]() However, CFC observed very robust customer behavior, as cardholders paid down their balances, while using their credit cards primarily for essential purchases such as groceries and other online purchases. "In March of 2020 the fixed income investor market began shedding consumer risk backed securities, as it expected the consumer to be strained, given the spike in unemployment. "The inaugural issuance of Series 2020-A out of CFC's newly formed master trust subsidiary was met by overwhelming investor demand as the transaction was more than six times oversubscribed, reflecting strong investor demand for fixed income securities" said Tamer El-Rayess, CFC's Chairman. Proceeds from the securitization were $188.9 million and will be used to repay CFC's two senior secured revolving credit facilities. ![]() The transaction was underwritten by Credit Suisse. "CFC customers view their credit card account as one of their most important financial tools." 18, 2020 /PRNewswire/ - Continental Finance Company, LLC ("CFC") is pleased to announce the closing of its fourth securitization of credit card receivables to date, which is also the first securitization from its newly formed subsidiary Continental Finance Credit Card ABS Master Trust ("CFCCMT").
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