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Investors are right to believe rosy conditions can’t last for credit-card lenders
A great environment for America’s credit-card lenders isn’t tempting investors. There are good reasons for that.
Rising interest rates mean credit-card companies will instantly earn more on their floating-rate loans. At the same time, the booming economy and tight labor market are keeping defaults low. This was underscored by Friday’s jobs report, which showed the unemployment rate at its lowest level since 1969.