Chase Bank priced its $775 million credit card receivables securitization on Wednesda.
Standard & Poor’s assigned preliminary ratings of ‘AAA’ to the deal called class A(2013-7) CHASE series notes. The notes priced at 43 basis points over one month LIBOR, according to a pricing document.
The note issuance is an asset-backed securities transaction backed by credit card receivables generated by revolving credit card accounts owned by Chase Bank USA N.A. or one of its affiliates.
J.P. Morgan, Barclays and RBC Capital Markets are the underwriters.
In July, Chase’s priced its $900 million, five-year class A(2013-6) notes at 42 basis points over one-month Libor.
Discover also plans to bring a credit card securitization to market. The issuer filed a preliminary registration with the U.S. Securities and Exchange Commission on Wednesday. The deal has not been sized yet.
In July, Discover priced a $550 million credit card securitization. The deal priced at 45 basis points over one-month Libor.
Analysts at Deutsche Bank said in a report that the elevated issuance activity of recent weeks has caused triple-A cerdit card spreads to widen modestly to spreads that have not been seen since June.
“Until broader market volatility related to tapering expectations widened spreads in June, bank card spreads had been range bound since the beginning of 2012,” explained Deutsche Bank analysts.