Internet users have clicked on the right banner ad to bring them to the ABS market, with the first securitization of credit card receivables from Visa cards offered strictly over the World Wide Web.

San Francisco's NextCard Inc. has opened at $300 million ABCP conduit with Barclays Capital, and will start with a $100 million issue in the pipeline.

"Securitization is an important part of NextCard's overall funding strategy," said CFO John Hashman. "We will continue to issue into conduit facilities originally, and later we intend to move into term securitization as our company matures."

NextCard, launched in 1997, offers "the first true Internet Visa," and unlike some of its bank competitors, which allow online applications for cards that clients can also get at branches, NextCard clients can only apply online. "The Internet provides great opportunity in the credit card business" he said.

And principals at the firm are no strangers to securitization, he added, with several, including himself, coming over from Providian.

Currently, NextCard uses San Jose's Heritage Bank of Commerce as its issuer, but Hashman said the firm is in the last stages of setting up NextBank, a chartered credit card bank, which will issue NextCard product in the future. - TC, SK

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