In the wake of completing its second asset-backed securitization of subprime credit card debt, Cross Country Bank is planning an ABS calendar for 2000 that will position the bank as a regular issuer.
"If we had our druthers, quarterly would be good," said Paul Seitz, executive vice president at Cross Country.
Seitz, however, added that because of issuance costs, the most likely - and economical - choice would be to issue three times a year.
"We've grown very rapidly over the last couple of years; we continue to have profitable growth, but because of the cost factor, we're probably better off doing three [a year]," he said.
Currently, Cross Country is hammering out a securitization schedule with underwriting partner Bear, Stearns & Co., and looks to be back in the market in the early part of next year.
The A tranche of the bank's last $367 million deal priced with triple-A ratings from Moody's Investors Service and Standard & Poor's Ratings Group, in part because of a guaranty from Financial Guaranty Assurance Inc. Duff & Phelps Credit Rating Co. rated the Class B certificates triple-B.
Delaware-based Cross Country was founded in July of 1996, and completed its first securitization in November 1998. The bank specializes in issuing both secured and unsecured Visa and MasterCard brand credit cards to consumers with poor or little credit. As of Aug. 31, Cross Country held $1.5 billion of managed credit card receivables.