Credit Card ABS on Track to Beat 2011 Volumes

Credit card securitization volume has grown in 2012 on the back of  both U.S. and non-U.S. banks credit card ABS, according to a Bank of America Merrill Lynch securitization report today.

Analysts said in the report that they expect a gross supply of $30 billion and negative net supply of $53 billion for all of 2012. New-issue volume for credit card ABS has already surpassed 2011 volumes despite the contraction of receivables balances for existing credit card trusts.

A Citigroup securitization report published today, puts year to date volumes for the sector at $26 billion, more that four times the volume recorded at the same time last year.

However, the decline in balances and high levels of scheduled maturities this year have meant sponsors of existing credit card ABS trusts have has little need to assign additional accounts to their trusts. In some cases, the situation has even allowed sponsors to remove receivables.