Bank of America is prepping its first credit card deal since 2010.
The BA Credit Card Trust will issue $750 million of class A five-year notes, according to a rating agency presale reports. Fitch Ratings assigned preliminary AAA’ ratings to the deal which benefits from credit enhancement of 31.75%; Moody's Investor Service expects to rate the notes 'Aaa.'
Upon issuance of this transaction, 14 tranches of class A notes totaling $9.647 billion will be outstanding under BACCT. The trust has also issued $4.026 billion of class B notes, $2.25 billion of class C notes, and $2.359 billion of class D notes, for a grand total of $18.282 billion, according to Fitch.
BofA Merrill Lynch is the underwriter of the latest offering.
So far this year, Citibank, Capital One, Discover, and Chase have all come to market.
Credit securitization issuance volumes remain steady. In 2013, credit cards securitizations totaled $35 billion according to Wells Fargo. The bank expects volumes for the asset class this year to match 2013.
A lack of growth in credit card receivables is restraining growth. Issuance still has some way to go before it reaches the high of $110 billion seen in 2007.
Editor's note: the original version of this article incorrectly stated the date of Bank of America's previous credit card securitization.