Metris Master Trust credit card ABS tightened following the news that parent The Metris Companies closed a portfolio sale and a new conduit facility. Metris sold $145 million in accounts and receivables from the Direct Merchants Credit Card Bank and $445 million of receivables from the Metris Master Trust. Metris also announced a new, private conduit facility totaling $610 million.
The conduit facility will replace the MMT series 2001-1 transaction, which will now enter into defeasance, ahead of its January 2004 maturity. As a result, spreads for MMT 2001-1 class A, which pays 22 basis points over one-month Libor, traded at a reported 100 basis points over Libor last Thursday, a 100 basis point tightening from pre-announcement levels.