Chase Bank plans a $500 million credit card securitization that could be upsized based on investor demand.
The class A 2014-2 issuance is backed by credit card receivables collected from revolving credit card accounts owned by Chase Bank.
JP Morgan, Mitsubishi UFJ Securities and RBS are the lead underwriters on the deal, according to a prospectus filed with the Securities and Exchange Commission.
This is the issuer’s second deal of 2014. Chase priced the 2014-1, class A notes on Jan. 17.
Issuance of credit card-backed securities has been strong, at $12.9 billion so far this year. That is 79% ahead of the 2013 pace, according to report published by Wells Fargo on Monday.
Despite the pickup, analysts at Wells Fargo said that outstanding credit card ABS remains low compared with pre-crisis levels. “We estimate that $2.2 billion of credit card ABS is set to mature in March, and another $8.6 billion will mature in Q2 2014,” the report stated. “We believe most issuers are refinancing deals following a period of substantial maturities.”
The report noted that lenders still seem to prefer the “relatively cheap and plentiful” alternative of deposit funding.