Discover Prices $1.3B of Credit Card ABS

October 22, 2013, 4:06 p.m. EDT 1 Min Read

Discover Bank priced $1.3 billion of bonds backed by credit card receivables over two series of notes.

Deutsche Bank and RBC Capital Markets are lead underwriters on the deal.

Moody's Investors Service has assigned a ‘Aaa ‘rating to the $850 million DiscoverSeries Class A(2013-5) notes and the $550million DiscoverSeries Class A(2013-6) notes issued by the Discover Card Execution Note Trust.

The DiscoverSeries Class A(2013-6), floating rate notes, structured with 4.96-years weighted average life priced at 45 basis points over interpolated swaps. The DiscoverSeries Class A(2013-5), fixed rate notes with a 2.97-year weighted average life priced at 35 basis points over interpolated swaps, according to a pricing document filed with the Securities and Exchange Commission.

The notes are expected to be the 68^th and 70^th tranches of notes to be issued from Discover’s credit card trust.

For reprint and licensing requests for this article, click here.

TRENDING

Securitization

Chase Auto Owner Trust prepares to sell $1.2 billion in notes

Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.

By Donna M. Mitchell

3h ago
Esoteric ABS

Credit investors snap up bonds backed by art loans, internet addresses

Esoteric ABS deals — backed by collateral other than student, auto, credit card and equipment loans — have risen to about 31% of the ABS market from 9% over the last decade.

By Immanual John Milton and Carmen Arroyo

4h ago
Originations

Mortgage rates rise on weak economic news

Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.

By Brad Finkelstein

4h ago

MORE FROM ASSET SECURITIZATION REPORT

Securitization

Chase Auto Owner Trust prepares to sell $1.2 billion in notes

Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.

By Donna M. Mitchell

3h ago
Originations

Mortgage rates rise on weak economic news

Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.

By Brad Finkelstein

4h ago
Securitization

New Jersey higher education agency to float about $226.5 million

Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.

By Donna M. Mitchell

April 24
Politics and policy

Why are Republicans trying to nullify bank rules? Blame the coming election.

Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.

By Claire Williams

April 24
Securitization

Duke Energy Progress prepares to issue $177.3 million in storm recovery bonds

The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.

By Donna M. Mitchell

April 24
Regulation and compliance

'Through the looking glass': Jamie Dimon sounds off on regulatory burden

The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.

By Catherine Leffert

April 24