4.12.24
A newcomer to the asset-backed securities (ABS) market, fiber securitizations are gaining momentum with issuance possibly as high as $5 billion in 2024. This growth is expected to continue over the next ten years. While previous fiber ABS transactions were secured by longer-term contracts, recent deals are based on revenue from monthly residential fiber internet service. Society’s increasing reliance on data for remote work, online learning, and streaming entertainment has been creating ‘massive capex needs’ for the companies in this market, according to Goldman Sachs, with securitization an excellent option for less expensive financing.