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C » Topics » Securitization of Credit Card Receivables

This excerpt taken from the C 10-Q filed Oct 31, 2008.

Securitization of Credit Card Receivables

        Credit card receivables are sold through securitized trusts, which are established to purchase the receivables. Credit card securitizations are revolving securitizations; that is, as customers pay their credit card balances, the cash proceeds are used to purchase new receivables and replenish the receivables in the trusts. The Company relies on securitizations to fund a significant portion of its managed N.A.Cards business, which includes both on-balance-sheet and securitized receivables.

        The following table reflects amounts related to the Company's securitized credit card receivables at September 30, 2008 and December 31, 2007:

In billions of dollars   September 30,
2008 		  December 31,
2007 		 

Principal amount of credit card receivables in trusts

   $ 122.5   $ 125.1  
           

Ownership interests in principal amount of trust credit card receivables:

              

Sold to investors via trust-issued securities

   $ 100.5   $ 102.3  

Retained by Citigroup as trust-issued securities

     6.3     4.5  

Retained by Citigroup via non-certificated interests recorded as consumer loans

     15.7     18.3  
           

Total ownership interests in principal amount of trust credit card receivables

   $ 122.5   $ 125.1  
           

Other amounts recorded on the balance sheet related to interests retained in the trust assets:

              

Other retained interest in securitized assets

   $ 2.8   $ 3.0  

Residual interest in securitized assets(1)

     1.6     3.4  

Amounts payable to trusts

     2.0     1.6  
           
(1)
Includes net unbilled interest in sold balances of $0.6 billion and $0.7 billion as of September 30, 2008 and December 31, 2007, respectively.

        In the third quarters of 2008 and 2007, the Company recorded net gains (losses) from securitization of credit card receivables of ($1,443) million and $169 million, and ($1,398) million and $747 million during the first nine months of 2008 and 2007, respectively. Net gains (losses) reflect the following:

    •
    incremental gains from new securitizations

    •
    the reversal of the allowance for loan losses associated with receivables sold

    •
    net gains on replenishments of the trust assets offset by other-than-temporary impairments

    •
    mark-to-market changes for the portion of the residual interest classified as trading assets
This excerpt taken from the C 10-Q filed Aug 1, 2008.

Securitization of Credit Card Receivables

        Credit card receivables are securitized through trusts, which are established to purchase the receivables. Credit card securitizations are revolving securitizations; that is, as customers pay their credit card balances, the cash proceeds are used to purchase new receivables and replenish the receivables in the trust. The Company relies on securitizations to fund a significant portion of its managed N.A.Cards business, which includes both on-balance-sheet and securitized receivables.

54

        The following table reflects amounts related to the Company's securitized credit card receivables at June 30, 2008 and December 31, 2007:

In billions of dollars
   June 30,
2008
   December 31,
2007
Principal amount of credit card receivables in trusts   $ 122.2   $ 125.1
   
 
Ownership interests in principal amount of trust credit card receivables:            
Sold to investors via trust-issued securities   $ 103.7   $ 102.3
Retained by Citigroup as trust-issued securities     6.0     4.5
Retained by Citigroup via non-certificated interests recorded as consumer loans     12.5     18.3
   
 
Total ownership interests in principal amount of trust credit card receivables   $ 122.2   $ 125.1
   
 
Other amounts recorded on the balance sheet related to interests retained in the trusts:            
Amounts receivable from trusts   $ 4.0   $ 4.4
Amounts payable to trusts     1.6     1.6
Residual interest retained in trust cash flows     3.1     2.7
   
 

        In the second quarters of 2008 and 2007, the Company recorded net gains (losses) from securitization of credit card receivables of ($176) million and $243 million, and $45 million and $578 million during the first six months of 2008 and 2007, respectively. Net gains (losses) reflect the following:

    •
    incremental gains from new securitizations

    •
    the reversal of the allowance for loan losses associated with receivables sold

    •
    net gains on replenishments of the trust assets offset by other-than-temporary impairments

    •
    mark-to-market changes for the portion of the residual interest classified as trading assets
This excerpt taken from the C 10-Q filed May 2, 2008.

Securitization of Credit Card Receivables

        Credit card receivables are securitized through trusts, which are established to purchase the receivables. Credit card securitizations are revolving securitizations; that is, as customers pay their credit card balances, the cash proceeds are used to purchase new receivables and replenish the receivables in the trust. The Company relies on securitizations to fund a significant portion of its managed U.S. Cards business, which includes both on-balance-sheet and securitized receivables.

46

        The following table reflects amounts related to the Company's securitized credit card receivables at March 31, 2008 and December 31, 2007:

In billions of dollars
   March 31,
2008
   December 31,
2007
Principal amount of credit card receivables in trusts   $ 120.7   $ 125.1
   
 
Ownership interests in principal amount of trust credit card receivables:            
Sold to investors via trust-issued securities   $ 102.8   $ 102.3
Retained by Citigroup as trust-issued securities     5.5     4.5
Retained by Citigroup via non-certificated interests recorded as consumer loans     12.4     18.3
   
 
Total ownership interests in principal amount of trust credit card receivables   $ 120.7   $ 125.1
   
 
Other amounts recorded on the balance sheet related to interests retained in the trusts:            
Amounts receivable from trusts   $ 4.0   $ 4.4
Amounts payable to trusts     1.7     1.6
Residual interest retained in trust cash flows     3.4     2.7
   
 

        The Company recorded net gains from securitization of credit card receivables of $221 million and $335 million during the first quarter of 2008 and 2007, respectively. Net gains reflect the following:

    •
    incremental gains from new securitizations

    •
    the reversal of the allowance for loan losses associated with receivables sold

    •
    net gains on replenishments of the trust assets offset by other-than-temporary impairments

    •
    mark-to-market changes for the portion of the residual interest classified as trading assets
This excerpt taken from the C 10-K filed Feb 22, 2008.

Securitization of Credit Card Receivables

Credit card receivables are securitized through trusts, which are established to purchase the receivables. Credit card securitizations are revolving securitizations; that is, as customers pay their credit card balances, the cash proceeds are used to purchase new receivables and replenish the receivables in the trust. The Company relies on securitizations to fund a significant portion of its managed U.S. Cards business, which includes both on-balance-sheet and securitized receivables.

The following table reflects amounts related to the Company’s securitized credit card receivables at December 31:

 

In billions of dollars      2007      2006

Principal amount of credit card
receivables in trusts

      $ 125.1      $ 112.4

Ownership interests in principal amount
of trust credit card receivables:

          

Sold to investors via trust-issued securities

        102.3        93.1

Retained by Citigroup as
trust-issued securities

        4.5        5.1

Retained by Citigroup via non-certificated interests recorded as consumer loans

        18.3        14.2

Total ownership interests in principal amount of trust credit card receivables

      $ 125.1      $ 112.4

Other amounts recorded on the balance sheet related to interests retained in the trusts:

          

Amounts receivable from trusts

      $ 4.4      $ 4.5

Amounts payable to trusts

        1.6        1.7

Residual interest retained in trust cash flows

        2.7        2.5

The Company recorded net gains from securitization of credit card receivables of $1,267 million, $1,084 million and $1,168 million during 2007, 2006 and 2005, respectively. Net gains reflect the following:

 

•  

incremental gains from new securitizations

•  

the reversal of the allowance for loan losses associated with receivables sold

•  

net gains on replenishments of the trust assets offset by other-than-temporary impairments

•  

mark-to-market changes for the portion of the residual interest classified as trading assets

EXCERPTS ON THIS PAGE:

10-Q
Oct 31, 2008
10-Q
Aug 1, 2008
10-Q
May 2, 2008
10-K
Feb 22, 2008

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