Capital One purchased
U.S credit card portfolio in October, and Orenbuch said that Capital One's "domestic credit card losses increased further, likely as a result of the seasoning" of the acquired loans.
The analyst noted that "COF had indicated in its 3Q call that the credit mark would have minimal (single basis point) impact on loss rates in the coming months. Nonetheless, this will reduce near term earnings expectations, and likely concern investors about intermediate term expectations."
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Written by Philip van Doorn in Jupiter, Fla.