More volatile market conditions may keep most credit card securitization issuers out of the market but maturing 2008 vintage bonds could refinance once the market improves.

According to a Wells Fargo securitization report published this week credit card ABS maturities totaled $3.1 billion in June, and total credit card ABS outstanding fell about 2.5% to $118.6 billion

Maturities over the next few months are concentrated in higher-coupon 2008 vintage bonds.  

However concerns over the Federal Reserve tapering its QE have made spreads more volatile for this asset class.

According to Wells Fargo, spreads on triple-A benchmark credit card ABS widened approximately 6 bps to 15 bps in June, while the subordinated credit card ABS spreads widened 33 bps.

 

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