The premium for performing credit card portfolio sales is running about 800 basis points above the 1999 average sales price. Super prime portfolios, with chargeoffs of 3.50% or less, are now producing average premiums of 22%. The year-to-date results come from Thousand Oaks, CA-based R.K. Hammer Investment Bankers. According to the study, the number of deals completed so far this year has significantly exceeded the total deals completed in 1999. The data are based on portfolio sales with at least $15 million in assets.
PERFORMING CARD SALES
3Q/00 2Q/00 1Q/00 1999
# Card Deals 10 9 10 21
Card Assets Sold $12.2b $1.2b $3.7b $19.4b
Avg. Portfolio $ 1.2b $138m $370m $923m
Avg. Premium 17.20% 17.00% 17.50% 16.42%
Source: R.K. Hammer Investment Bankers