Nineteen card portfolios were sold in 1995, one more than the year earlier, investment banker Robert K. Hammer found in an annual survey. The president and chief executive of R.K. Hammer Investment Bankers noted that bank earnings and capital were up sharply, lessening the need to shed assets. He expects the number of deals to rise this year.
Mr. Hammer found the average weighted premiums reached a historical high in the last 12 months, to 20.7%, topping the 20.4% weighted average reached in the late '80s heyday.
The range of estimated premiums received in 1995 fell, from a low of 5% to 27%, depending on the credit quality and asset size of the portfolio. Mr. Hammer predicts that average premiums on card deals this year will often to 19.5%, while the range will remain wide, from 4.5% to 25%.