Target's credit-card losses climb
Target wrote off credit-card charges at an 8 percent annual rate in March -- a hefty bite and an increase from the 6.8 percent writeoff rate for February. Of course, charging double-digit interest rates helps make up the loss! The portfolio's annualized yield for the three months ending in March was still 19 percent. Here is a Bloomberg story. Here is a table from Target's SEC filing.
PORTFOLIO PERFORMANCE RATES
(a) Net Charge-Offs (annualized % of Principal Receivables at beginning of period)
8.12%
(b) Monthly Payment Rate ( % of Total Receivables at beginning of period, adjusted for number of days in period)
14.76%
(c) Trust Portfolio Yield (annualized)
26.58%
(d) Portfolio Yield (3 month average (annualized))
19.20%
