Deal Scan: Citi Issuing $1.1B in Card ABS

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Credit Card Supply: Citibank Credit Card Issuance Trust is offering another $1.1 billion of notes backed by prime credit-card receivables, according to Moody’s Investors Service. The Class 2017-A5 notes, rated Aaa, will carry a coupon of one month Libor plus 62 basis points, with 18.5% subordination.

The Citi trust currently holds approximately $40 billion of Citi’s $126.4 billion managed credit-card portfolio. Citi has added 7.7 million accounts and $22.8 billion in receivables balances since September 2013 to the trust, unlike other issuers that have refrained from adding new accounts to their master trust platforms in recent years. The pool in 2017-A5 includes has an 87% concentration of accounts older than five years.

The lead underwriters on the deal are Citigroup, Societe Generale, TD Securities and Wells Fargo.

Consumer ABS Spreads Tighten: Securitized products spreads were “modestly” tighter in March, with many consumer asset-backed sectors tightening to the “best levels in over a year,”: according to the IHS Market global fix income monthly focus report issued Thursday. IHS noted that 1-2 year AAA-rated subprime auto paper tightened eight basis points to end the month up 25 basis points against the Eurodollar Synthetic Forward (EDSF) rate. For two-three year AAA floating-rate U.S. credit cards spreads, ended March at Libor plus 24 basis point, the tightest level of the past year.  

ABS 15-G Filing: Natixis Commercial Mortgage Securities Trust on Thursday filed a due-diligence registration with the Securities and Exchange Commission for its forthcoming 2017-75B issuance.

CFO Resurgence? Bonds backed by interests in private equity funds were a niche yet relatively active part of the securitization market prior to the global financial crisis, then went dormant. But Fitch thinks a large deal completed last year, the $1.1 billion Astrea III, signals at least a modest revitalization. "The varied motives that drove issuance of CFOs prior to the crisis remain valid today, including portfolio management or rebalancing, creation of secondary market liquidity, regulatory capital considerations, leveraging returns, targeted promotion of economic development and development of private equity as a capital market asset class," the rating agnecy stated in a report published Thursday.

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