The Capital One Multi-Asset Execution Trust, a master trust sponsored by Capital One Bank, is poised to issue $1 billion in notes backed by receivables on outstanding consumer and small business credit cards balances, in the entity’s first issuance since 2019.
As of May 19, 2021, the consumer segment receivables totaled about $17.8 billion, with an average balance of $1,737, with an average credit limit of $9,315, according to Fitch Ratings. The receivables in the small business cards segment total about $2.1 billion, with an average balance of $2,625 and an average credit limit of $11,254.
RBC Capital Markets and Capital One Securities are both underwriters on the deal, according to Fitch, which expects to assign ‘AAA’ ratings to both the Class A notes from the 2021-1 series and the 2021-2. Both classes are expected to issue $500 million.
After issuing the transactions, Fitch expects 13 notes to be outstanding under the COMET trust. Also, the entity will have invested a total of about $12.5 billion, consisting of $9.9 billion of class A notes, $1.1 billion of class B notes and $1.1 billion of class C notes.
While the trust has issued its first series of notes since 2019, the entity appears to be stepping into ABS with a bit of caution. All of the series in the 2019 vintage issued notes amounting $1,300 or more: the 2019-1 series issued $1,500; the 2019-2 series issued $1,300 and the 2019-3 series issued $1,450.
