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Bank of America priced its first credit card securitization in nearly four years at tighter spreads to competitors even though the offering was more than doubled the size, to $1.75 billion from $750 million originally
The five-year notes, which are rated AAA’ by Fitch Ratings and Aaa’ by Moody’s Investors Service, pay one-month Libor plus 38 basis points.
By comparison, in January Discover priced an offering of triple-A rated five-year, notes at 43 basis points over one-month Libor.
Citibank was also in the market last month, but its offering was longer-dated and so not directly comparable. The triple-A notes had a weighted average maturity of 6.99 years and priced at 52 basis points over swaps.
