JPMorgan Chase is issuing its third credit-card securitization of the year – and the second this month – through its Chase Issuance Trust (CHAIT) platform of CHASEseries notes.
The new deal is structured, similarly to 2016’s previous deals, as a $500 million offering of floating rate notes. Credit enhancement on the seven-year notes is set at 14%.
Fitch Ratings has issued an expected structured finance rating of ‘AAA’ on the notes.
Upon issuance, there will be 30 tranches of Class A notes outstanding under the CHAIT program, and are part of $33.3 billion in total invested notes divided between Class A ($27.3 billion), Class B ($3.09 billion) and Class C ($2.98 billion).
JPMorgan filed for its second issuance on June 1 with the Securities and Exchange Commission. In that filing, the bank noted that its card receivables in its CHASEseries program are approximately 172 months in age, with an average balance of $1,586 and an average credit limit of $10,418. Over 20% of the accounts are paid off in full each month, while 3.5% of the accounts receive the minimum monthly payment on the balance.
Underwriters for 2016-3 include JPMorgan, Societe Generale, and RBC.
Standard & Poor’s is also expected to file ‘AAA’ ratings on the notes.