Card Delinquency Drops Beat Expectations.

Credit card delinquency rates continued to improve in May, firming a months-long trend.

The six major issuers on Tuesday reported bigger-than-expected declines in the percentage of loans 30 days or more past due in monthly filings with the Securities and Exchange Commission. Delinquencies are closely watched because they are a reliable indicator of future losses.

"We're looking at more significant declines in delinquencies than we would on average," said Sanjay Sakhrani, an analyst at KBW Inc.'s Keefe, Bruyette and Woods Inc.

Chargeoff rates fell at several issuers as well, underscoring a growing belief among industry experts that losses have likely peaked. …