On the earnings blowout from Capital One Financial Corp., paper from its most recent credit card deal was expected to trade at least three-to-five points inside its new issue levels. Recall that Cap One's three-year triple-As priced at 39 basis points over one-month Libor. As if they were toxic, however, the bonds were not trading as of press time last week - presumably because no one is willing to let them go, a sell-side researcher said.
"What you've got is high quality credit card paper from an issuer that is fundamentally in good shape, albeit it has suffered from headline risk," the researcher said. "Cap One's earnings have sort of quieted the naysayers."