JPMorgan Chase & Co. was expected to sell a $1 billion credit card loan-backed deal Monday, a person familiar with the matter told Dow Jones Newswires.
The self-led deal, which comes on the heels of a Citigroup Inc. credit card loan-backed deal sold Friday, is also ineligible for the Federal Reserve's Term Asset-Backed Securities Loan Facility, or Talf, whose intent is to help the securitization market.
The sale of Citigroup's $1.25 billion deal was a sign of strength in the consumer loan-backed market. The buyers were mainly long-term, conservative investors who do not use debt financing, as is offered by the Fed, for their purchases.
The deal broke a pattern of bonds being sold just before the loan application deadline for Talf.
The sale of these deals shows the asset-backed securities market is likely to become more active in the next few weeks, helping the flow of credit to consumers.
JPMorgan sold a $1.5 billion non-Talf deal this month that grew from an original $750 million. Last month, it sold a $5 billion, Talf-eligible credit card loan-backed deal at 155 basis points over one-month Libor.