A $500 million offering of MBNA America Bank securities backed by credit-card receivables were priced Thursday by underwriters led by Merrill Lynch & Co. The yield is 7.3%, 55 basis points higher than five-year Treasury notes. This is the tightest yield spread ever for a credit-card security with a five-year maturity. In vestors' appetite for two earlier deals led to a tight spread.
Chase Manhattan Corp. issued card-backed securities in February to yield 78 basis points above five-year Treasuries.