Robinhood plans to issue its first credit card asset-backed securities

Glonghui, July 14｜According to Bloomberg, an exchange is gauging market investor demand for a bond secured by its branded consumer credit card receivables, which would be the company’s first issuance of such securities. The company plans to sell at least $400 million in asset-backed securities, dividing them into four tranches. The highest-rated tranche is initially priced about 0.8 percentage points above the benchmark interest rate. This financing move comes as the exchange is aggressively expanding its credit card business segment, marking a gradual shift beyond its well-known positioning as a retail brokerage platform.