Standard & Poor's said in a report today that U.S. credit card securitization volume is up by 156% from volumes issued in 2011.
The rating agency said that approximately $12.1bn of credit card ABS has been issued this year. The tally includes two deals announced today by Discover.
Discover is marketing two deals with a combined issuance of $750mn from its master trust structure. The class A 2012-3 deal is due on May 15, 2015. The class A 2012-4 deal is structured with a May15, 2017 average maturity. S&P will rate both deals and has assigned each tranch a preliminary 'AAA' rating.
Barclays Capital, JP Morgan, BofA Merrill Lynch, Credit Suisse, Goldman Sachs, Misubishi UFJ Securities and RBC Capital Markets are underwriters on the deals.
So far this year credit card volumes have amounted to twice as much of the $4.7bn done during the first 5 months of 2011. S&P said that issuance remains on track to exceed its $20bn full year forecast.
Still the rating agency said it expected outstanding bankcard ABS to fall by the end of the year to $125bn from Q1's $158bn, which could hurt liquidity in that market. "Credit card ABS volume historically tracked maturing loans and new revolving credit, but cheap deposit-funding options for banks and regulatory issues have restrained new issues," said S&P analysts in the report today.