MBNA signaled a no go on Spanish bank, Santander Central Hispano's bid to buy back Abbey National's credit card operation sold to the U.S. company four years ago (see ASR 01/09/06). Banco Santander is considering expanding Abbey's business by severing its ties with MBNA and repurchasing Abbey's portfolio. According to market reports, MBNA has issued credit cards with the Abbey logo to 1.27million U.K. customers.
Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
