Avant returns after a stint to raise $450 million
Since July 21, 2021, the cutoff date before its last deal, Avant's active credit card accounts increased 388%, to its current 1 million accounts.
Payments
Klarna enters arena with big banks as it adds financial services
The Swedish institution is adding savings accounts to its signature buy now/pay later service as it plots an IPO. Analysts say it will be a struggle to go against U.S. institutions.
American Express Credit Account Master Trust raises $571.4 million
The class A and class B notes benefit from credit enhancement levels of 12.50% and 8.75%, respectively, and the class A notes benefit from the subordination of class B certificates.
JPMorgan gets lift from investment bank, offsetting jump in credit costs
Investment banking fees shot up at the nation's largest bank, thanks to rebounds in M&A and the equity capital markets segment. And despite higher credit costs in the company's card business, a top bank executive expressed confidence in the health of U.S. consumers.
Glacier Credit Card Trust raises CA$550 million for ABS backed by Canadian Tire
The deal benefits from excess spread, overcollateralization, and senior/subordinate enhancements.
Mission Lane Credit Card Master Trust aims to raise $350 million
Initially, the reserve account starts at 0.0%, but it will be funded to either 1.00%, 2.00% or 3.00%, depending on the level of the notes' three-month average excess spread.
Is the CFPB reining in buy now, pay later loans too soon?
A proposal from the Consumer Financial Protection Bureau to extend the same protections as credit cards to the fast-growing BNPL industry aims to protect consumers, but it could also stunt the nascent industry's growth, experts say.
Appeals court again nixes judge’s transfer of CFPB late-fee case to D.C.
A federal judge in Texas is locked in a back-and-forth with an appeals court over whether the industry's challenge to a cap on credit card late fees should be moved to Washington, D.C.
More consumers are maxing out their credit cards: New York Fed
The number of borrowers who are at their credit limits is approaching its pre-pandemic level, and the percentage of balances that are sliding into delinquency has hit its highest rate in more than a decade, according to new research. Still, card companies are generally expressing optimism about their credit outlooks.
American Express prepares to issue $1.6 billion from two series
Price guidance was not available on the series 2024-1, the database notes that the series 2024-2 class A notes are expected to price between 63 and 65 basis points over the three-month interpolated yield curve.
Bank of America hurt by rising losses in credit cards, office loans
Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
Will the Fed’s master account victories stand the test of time?
The Federal Reserve scored some important legal victories in lawsuits challenging its discretion to grant or deny applicants for master accounts. But whether those victories will last through the appeals process or scrutiny from Congress is uncertain.
Transfer of CFPB $8 late fee rule lawsuit stayed pending appeal
A federal appeals court is putting the transfer of a lawsuit challenging the Consumer Financial Protection Bureau on hold pending the outcome of a hearing on the suit's appropriate venue.
Brex returns to raise $260 million in notes backed by revenues from business charge cards
The top three industries includes software, healthcare and software development, accounting for 18.45%, 7.89% and 5.12%, respectively.
Wells Fargo sells $500 million in prime ABS from card receivables
The weighted average (WA) credit line was $10,874, which Moody's said is low relative to other large card issuers, and in fact 69.5% of the pool has a credit limit of $10,000 or more.
Consumer card debt rises, but so do ABS opportunities
Rising card balances—and delinquencies—might be a matter of normalization post-COVID, but securitization remains an attractive option for banks extending revolving credit, say observers.
Credit card issuers’ APR margins hit record 14.3% in 2023, CFPB says
Lenders collected an estimated $25 billion in additional interest income last year by raising the average margin on annual percentage rates, or the amount above the prime rate, according to the Consumer Financial Protection Bureau.
The Capital One-Discover deal raises thorny issues for Washington
The blockbuster merger proposal will be reviewed at a time when the Biden administration is expressing skepticism about consolidation. Its analysis will have to account for markets dominated by both big banks and the likes of Visa and Mastercard.
Big banks charge higher credit card APRs than smaller issuers, CFPB says
The median interest rate that large credit card issuers charged consumers with good credit in the first half of 2023 was 28.2%, compared with 18.15% at smaller banks and credit unions, according to a study by the Consumer Financial Protection Bureau, which is on a campaign against excessive fees.
Rich and poor consumers use BNPL for different reasons: Fed data
Financially stressed consumers nearing their credit limit use buy now/pay later loans to finance smaller purchases, while wealthier households want to avoid paying interest or carrying a balance on credit cards for bigger-ticket items, according to the New York Fed.
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