JPMorgan Chase has priced another credit card securitization under its Chase Issuance Trust (CHAIT) this afternoon, according to Bloomberg.
The company made a Securities and Exchange Commission filing for the transaction this morning.
The deal was upsized to $750 from $600 million, the news service said. It had JPMorgan Securities as lead manager. RBC Capital Markets and Royal Bank of Scotland (RBS) are co-managers on the card deal.
This offering comes after Citibank's priced a deal last week under its Citibank Credit Card Issuance Trust.
JPMorgan Securities ABS analysts said (without naming the sponsor bank involved) that the bank had last sold bonds out of its master trust in December 2009.
The three-year 'AAA' bond priced at 10 basis points over swaps. This priced similarly to the post-2007 tightest print of a comparable CHAIT offering that priced three weeks ago, analysts said.
By locking in term low-cost financing, analysts said that bank sponsors should find that securitization is cost as well as capital/liquidity ratio effective.
They added that this most recent offering from Citi should encourage other banks such as Bank of America and Capital One to revisit the ABS market as well.
For more on credit card ABS relative value, here's Nora Colomer's piece on the sector from this month's ASR.
"Given the overwhelming demand for high quality Treasury surrogates, we believe spreads should
hold up well despite a potential increase in credit card ABS supply," JPMorgan analysts wrote. "In secondary, three-year CHAIT 'AAA' bonds have traded as tight as six basis points in recent weeks. We expect that this benchmark ABS spreads could reach swaps flat in 3Q13 on strong long term fundamentals and technicals."
Other deals in the market are from the auto sector as usual. Santander Consumer USA, Volkswagen, CarMax Business Services and Huntington National Bank are all planning on selling their respective deals this week.
Bloomberg also reported that Macquarie Leasing is planning to sell a $600 million auto ABS with JPMorgan and RBS as underwriters.
Standard & Poor's in its midday report estimated that year-to-date issuance in the asset class, including these issues, will reach $82 billion.