GE Capital Corp. has received regulatory approval to securitize up to $5 billion of the credit card receivables originated by its Monogram Bank unit. Its inaugural offering is expected shortly after the closing of the Bank One/J.P. Morgan Chase merger, sources said. JPMorgan Securities will reportedly underwrite the pending transaction. The first offering from the RFS Funding Trust will be a senior/sub floating rate offering of a yet-to-be determined tenor, according to records filed with the Securities and Exchange Commission (SEC).
With more than 100 million accounts, totaling roughly $60 billion in consumer debt, GECC is one of the leading private label credit card issuers in the world. Loss rates for the portfolio sat at 6.5% through 2002 and, using GE's 2003 year-to-date estimate, would average 6.3% since 2001. GECC also reports a steady 7% decline in cost-per-account since 1999, currently at $32.82 per account.