Card Issuers Cutting Costs

The idea

I believe big card issuers will protect their profit margins through cost discipline, even as spending on rewards, marketing and technology keeps rising. This basket spreads across large bank card books, store-card specialists, the Visa and Mastercard networks, and American Express itself, the company whose cost cuts and raised outlook sparked the idea, with a small cash buffer and no single name dominating. I would rethink this if credit losses start rising faster than these companies can cut costs, since that would erode the margins this bet depends on.