Bank of America sells $900 mln credit card ABS

By Nancy Leinfuss

NEW YORK, May 5 (BestGrowthStock) – Bank of America Credit Card
Trust priced an expanded $900 million offering of credit card
securities in the U.S. asset-backed market on Wednesday amid
solid reception from investors, market sources said.

The single-tranche credit card deal dubbed “BACCT 2010-A1,”
was initially marketed at a size of $750 million. Its AAA-rated
2.92-year notes were launched at a spread of 30 basis points
over one-month Libor, market sources said.

“There was a lot of interest in the sale. The deal was
increased in size by $150 million to accommodate orders from
investors,” said one ABS portfolio manager.

Bank of America Merrill Lynch, lead underwriter for the
sale, was marketing the deal to investors along with
co-managers Credit Suisse, Barclays Capital, Deutsche Bank
Securities and JPMorgan Securities this week.

The deal follows a larger-than-expected $911.8 million
credit card sale from American Express Issuance Trust last
week. Despite robust investor interest for securities, credit
card issuers have been largely absent from the market this year
amid a changing securitization landscape that has made it less
attractive for some issuers.

After heading up supply in recent years, credit card
securities issuance has accounted for a mere $2.9 billion of
the $37 billion of ABS securities sold so far in 2010.

A tougher regulatory and legislative environment combined
with new accounting rules and tighter lending standards have
all worked to clamp down on credit card issuance this year.

Many bank credit card issuers have turned to other funding
alternatives rather than securitization, such as the unsecured
corporate debt market, while others are simply relying on their
own deposit base to fund new consumer loans.

Stock Market Trading
(Editing by James Dalgleish)

Bank of America sells $900 mln credit card ABS