Salomon Brothers and Goldman Sachs priced the high-profile $1.24 billion Providian Pass-Through Amortizing Credit Card Trust (PACCT) 2002-1 distressed credit card securitization on June 11, significantly cheapening the deal and shortening the weighted average lives (WAL) on the lower classes to get investors up to the plate.

Providian wrote down an approximate $2.6 billion portfolio of high-risk credit card accounts to about $1.4 billion in the first quarter, creating the cushion that allowed the largest-ever distressed credit card ABS deal to get done.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.