HSBC is considering issuing a second credit card securitization from its Turquoise program, which was launched earlier this year. The issue, which could again be around $1 billion, may reach the market towards the end of this year. Turquoise is HSBC's first credit card ABS program (SN, 5/19).

Dominic Swan, head of structured investments in London, said credit cards, along with mortgages, are a core asset and offer a good diversification. If completed, the deal would likely be U.S. dollar-denominated. "You get better execution in the U.S. The U.S. investors value liquidity more," he said.

Although U.K. credit card performance has been mixed this year, Swan said the bank's portfolio is markedly different from other deals that have been completed. "I think for the credit card ABS sector, we're headed for another year or two of moderate pain," he said. "HSBC's [portfolio] tends to be branch- and client-based, and the seasoning on the book is substantial. It performs well and is a good portfolio."