Esoteric

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.