Issuer prices rare subprime credit card ABS

credit card
By Sasha Padbidri
15 Dec 2016

A rare subprime credit card ABS was priced this week, though sources say similar deals are unlikely to materialize in significant volume as online lenders court subprime borrowers and issuers faced increased costs of setting up credit card programs.

Sole lead Natixis priced the $64.511m offering from Continental Finance Company on December 13, with the $40.7m ‘A’ notes coming in at 350bp over eurodollar spot forwards. The $13.5m ‘B’ notes were priced at 705bp over swaps, while the $10.1m ‘C’ notes were retained.

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