Citibank has filed an S-3 with the Securities and Exchange Commission to issue under its Citibank Credit Card Issuance Trust.
According to the filing, the issuance trust is offering Class A notes, Class B notes and Class C notes. The notes will be issued in series and each series will be either a single or a multiple issuance series.
To view the full filing, please click on this link.
This follows the late November SEC S-3 filing made by Chase USA to issue under its Chase Issuance Trust program.
The Chase deal is backed by credit card receivables generated from transactions made by holders of selected MasterCard and VISA revolving credit card accounts from the portfolio of MasterCard and VISA revolving credit card accounts owned by Chase USA or by one of its affiliates, according to the filing.
The filing come after a rather quiet year for what was once the dominant asset in consumer ABS sector. "From a banks perspective credit cards are the largest and easiest asset to securitize but the only thing that we have really seen in 2010 are retail card programs and that won't hold up as a viable capital raising alternative," said one bank trader.
The upcoming credit card deals also come with news of improving performance for the sector. Moody’s Investors Service predicts that performance of U.S. credit-card asset-backed securities will improve in 2011 as charge-offs decline and credit-card ABS issuance increases. Moody’s attributes its optimism to the economy emerging from recession and stabilized unemployment.
Fitch Ratings likewise reported this week that continued improvements in delinquency trends indicate card chargeoffs could drop in the coming months.