Capital One COF Q3 2007

Overall (BBB+) --The largest independent credit card issuer --EPS -0.21, lowered due to the shutdown of Greenpoint Mortgage (82 mil), higher than est consumer credit metric --net charge-off rate 4.13%, highest in one year, trending upward --30+ delinquencies rate 4.46%, highest in one year, trending upward. Yet national lending delinquenies rate is 4.7% in Sep. Evaluation --10y bond 170 bps, dropped 70 bps compared end of Aug. relative High historical. comments: --allowance ratio is trending down while delinquency rate is inching upward, bizarre, short the