Holders of the so-called catastrophe bonds could end up doing far better than investors in the firm's junior bonds, which have been written off by Swiss regulator FINMA as a part of the UBS deal.
The current deal is a follow-up from a master trust that floated $1.2 billion in notes last September, and will repay the notes sequentially.
Instead of ordinary coupons, investors will receive semi-annual coupon payments linked to these VCUs. The outcome-based bond follows a rhino bond issued by the World Bank last year, which rewards investors more if the population of the animals grows.
This Mosaic deal is the first to include PowerSwitch ZERO loans, which defer principal and interest for the loan term's first 12 or 18 months. They account for less than 2% of the pool.
Initially, charges start at 4% of a customer's total bill. Yet a 10% is also tacked on from similar 2014 bonds.
One enhancement to the notes, however, is a $55 million credit insurance policy from AIG Europe that covers the Rosy Blue Carat receivables.
The security driving the revenue to the bonds is a tariff on customers' monthly bills, in line with the "U.S. Utility Tariff/Stranded Cost Bonds Rating Criteria."
Among DataBank 2023-1's enhancement features is a turbo principal amortization mechanism that kicks in after the notes' anticipated repayment date.
Borrowers that are couples, and where the female is younger, account for 32.55% of the pool's aggregate unpaid principal balance, the plurality.
The deal has a $10 million prefunding account that could purchase additional eligible receivables during a three-month period after closing.
VZMT began securitizing business device plan revenue in 2021. Now, business accounts represent up to 10% of the current securitized asset pool.
Deals, trends and research in structured finance and asset-backed securities for the week of March 12-18
The shortage has driven activity in the leasing market, reflected in more than $10 billion in lease-backed securities providing funds for new- and used container acquisitions by major shipping firms.
Worried initially that marketplace lenders might falter at the first stage of a crisis, the sector has weathered the COVID-19 storm and now projects to match 2019's record securitization deal volume.
The transaction has a high proportion of operating lease contracts, making up 91.2% of the pool's asset value.
DataBank, sponsored by an affiliate of Colony Capital, is pooling ownership and leasehold stakes in 15 data centers in six cities, including the Salt Lake City market that is in high demand with West Coast companies diversifying and expanding data-center operations.
The eight-year-old finance company closed on its fourth overall securitization, in what was its largest ABS bond issuance to date.
The ratings agency says the pool of prime motorcycle loans is slightly weaker than the lender's previous securitization, plus uncertainties remain over how the pandemic might still impact riders' monthly payment performance.
The new transaction priced inside of the coupons Textainer achieved in its prior 2020 container-lease securitization, as investors continue to clamor for the lengthier terms of the asset class' bonds.
The startup firm, backed by hedge fund capital, is pooling more than half of its managed railcar portfolio for the single-A rated transaction.
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