JP Morgan plans to issue another $500 million of class A notes from its credit card receivable trust, just one week after completing a $750 million transaction.
Chase Issuance Trust 2015-4 will offer a single class of five-year senior notes, according to an offering circular registered with the Securities and Exchange Commission. The document did not indicate who would rate the notes but the class A notes are typically rated at the triple-A level.
Last week, the trust a single tranche of two-year class A notes last week at 25 basis points over one-month Libor.
Also pricing last week was Discover Bank’s Discover Card Execution Note Trust 2015-2 and Bank of America’s BA Credit Card Trust 2015-2. Discover's five-year, triple-A notes priced at 38 basis points over interpolated swaps and BofA's three-year, triple-A notes priced at 26 basis points over interpolated swaps. Fitch Ratings assigned ratings to all three deals pricing last week.
With the inclusion of its latest deal, JP Morgan now has 36 tranches of class A notes outstanding under the Chase issuance trust. The total invested amount of notes outstanding will be approximately $38.4 billion, consisting of $30.9 billion of class A notes, $3.8 billion of class B notes and $3.7 billion of class C notes.
New issue volume for credit cards was $11.7 billion through April 24, just ahead of the $10.5 billion of maturities through April 2015, according to figures reported today by Wells Fargo.
“We estimate total credit card ABS maturities for 2015 at $36.6 billion,” Wells Fargo stated in the report. “Another $17.3 billion will be coming due in the next four months, and this amount may stimulate an increase in the pace of issuance”.
In the chart below, Wells Fargo plots the amount of loans maturing month to month, over a two-year period.