Glen Fest

The "second-look" financing partner for retail chains like Home Depot is offering $135.9 million of notes backed by card receivables in its first securitization.

TD Bank joins RBC and Bank of Montreal in sponsoring U.S.-dollar securitizations of prime credit-card receivables from its managed portfolio. The market is still awaiting its first U.S. institutional deal.

That's significantly wider than 121 basis points average for new CLOs backed by broadly syndicated loans that were issued in December.

The $312 million transaction a 24-month reinvestment period, in which principal collections can be used to invest and acquire additional loans for the collateral pool.

GoldenTree's $757 million CLO is the first deal seeking to price in the 2019 primary market, while Octagon Credit Investors is refinancing a $791.5M, 2014-vintage CLO (for a second time).

The collateral for the $550 million transaction is slightly weaker than that of its prior deal, but rating agencies expect cumulative net losses to be in the same range.

The two latest transactions will push announced deal volume at or above $6 billion for the first two weeks of 2019.

Physicians account for 28.8% of borrowers in the collateral pool, up from 22% for SoFi's previous student loan securitization, according to Moody's Investors Service. Notably, fewer of these, 4.2% versus 7.8%, are in residency programs.

The Japan Financial Services Agency is considering increasing capital requirements for holdings of securitizations if the sponsors do not have "skin in game."

The deal is the first credt card securitization by anyone in 2019 and features two-year floating-rate notes from RBC's master trust.