Advanta Corp. said Thursday that it can avoid an early amortization for its credit card securitization master trust, and that it does not expect such an event to occur.

Analysts had said this week in interviews and research reports that early amortization — a rare event in which cash flows from a trust would be directed to pay off bondholders and the structure would unwind — was a possibility.

But Advanta said it is "under no obligation to fund any receivables on its balance sheet," so the idea that "any possible early amortization of the securitization trust would unduly burden the company's balance sheet and drain its cash is wrong."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.