Bonds News

Chase to sell $1 bln of non-TALF eligible ABS

NEW YORK, June 22 (Reuters) - Chase Issuance Trust is planning a $1 billion sale of asset-backed securities supported by consumer credit card bills, market sources said on Monday.

Chase’s one-year AAA-rated notes are expected to price at a spread of 80 basis points over Libor through underwriter JP Morgan Securities, market sources said.

The offering will not be sold under the Federal Reserve’s Term Asset-Backing Securities Loan Facility, created to revive consumer lending and reopen the securitization market. Since the program’s launch in March, ABS deals have met with strong investor demand.

The ability of an issuer to sell securities without the support of the Fed is seen as a sign of strength for the ABS market, nearly shut down by a credit crisis in late 2008.

In another recent sale, Citibank sold $1.25 billion of non-TALF eligible credit card securities. The deal’s two-year notes were priced at a spread of 105 basis points over swaps, while its five-year securities came at a spread of 170 basis points over swaps, market sources said. (Reporting by Nancy Leinfuss; Editing by Kenneth Barry)