President’s Choice Bank, recently bought by Equitable Bank, is preparing to offer investors $450 million in asset-backed securities (ABS), backed by a pool of credit card receivables through the Eagle Credit Card Trust ABS issuer, series 2026-1 and 2026-2.
Divided between ECCT 2026-1 and ECCT 2026-2, the series will issue $200 million and $250 million in ABS, respectively, and both will issue three tranches of class A, B and C notes, according to analysts at Fitch Ratings.
All the notes from the 2026-1 series have a March 17, 2033 legal final maturity date, while the 2026-2 notes mature on Oct. 17, 2034, the rating agency said. Both ECCT 2026-1 and ECCT 2026-2 appear to have prefunding periods that extend into Q1 2027 and will begin paying interest to noteholders on March 17, 2027 and April 19, 2027, the rating agency said.
CIBC World Markets, RBC Dominion Securities and BMO Nesbitt Burns, are joint bookrunners for all the notes, Fitch said.
Both series feature a revolving period during which investors will receive fixed-rate interest payments. At the end of those revolving periods, and as long as amortization has not been triggered, they will enter controlled accumulation periods.
For the 2026-1 series, that period begins in December 2029, and the controlled accumulation period begins on July 1, 2031, the rating agency said.
Both underlying pools were examined up to the August 2026 collection period, and both showed slightly elevated net charge-off rates and 60+ day delinquencies compared with a year earlier, according to Fitch.
In both pools, Fitch finds that gross yields remained strong at 26.49%, up from 25.74% a year ago. Also, the monthly payment rate increased to 64.57%, an increase from 63.82% a year prior, the rating agency found.
Notes rated AAA and A across both series benefit from credit enhancement levels of 7.00% and 3.50%, while the BBB notes are bolstered by a cash reserve account, Fitch said.
