Barclays and Discover Bank are adding credit card deals to the mix of consumer debt securitization this week, according to Fitch Ratings.
Barclays has launched two separate offerings from its Drydock master trust. The 2015-3 series consists of $250 million of 'AAA' rated class A notes with credit enhancement at 21% and an unrated $66.4 million class B tranche.
The series 2015-4 consists of $250 million of 'AAA' rated class A notes with credit enhancement at 18% and an unrated $54.8 million class B notes The presale reports did not indicate the maturity date of either offering.
In its presale report, Fitch pointed to the strong performance of the Drydock portfolio as a positive for the transactions. As of October 2015, chargeoffs and 60+ days delinquencies have remained relatively stable over the past 24 months and the monthly payment rate (MPR) has remained consistent since the inception of the trust. Gross yield has been robust over the past two years.
Fitch also assigned 'AAA' ratings to $500 million of securities to be issued from Discover Card's execution note trust. The series 2015-4 notes benefit from credit enhancement of 24.5% and are structured with a legal final maturity date of April 2023.
Discover, a regular issuer, now has 31 series of class A notes outstanding. As of September 2015, 100% of the trust receivables are tied to card accounts that Discover originated at least five years ago. This is a credit strength, according to Fitch, because cardholders who have been making payments on their cards for a long period of time are less likely to default.