Esoteric

The new transaction, the $608 million Business Jet Securities, Series 2018-1, is less than half the size of the $1.48 billion deal pulled in September; it also appears to be less risky, by several measures.

Moody's Investors Service has revised its expectations for cumulative net losses, to 3.75% from 3.5%, because a 2016 transaction is not performing as well as expected.

It's the first time the private tower operator has issued from its master trust in two years; the A rated notes will be backed by a pool of 2,551 towers representing 66% of its total tower cash flow.

All four senior tranches benefit from initial hard credit enhancement of12%, which is down from 12.25% on the senior tranches of the 2017-1 deal, 12.30% for 2016-1 and 12.90% in 2015-1.

Lease contracts from the newly acquired business account for 5% of collateral for the $305.7 million transaction; the remainder is leases on construction and transportation equipment.

Goldman Sachs was set to price $898.1 million of the sales tax bonds Wednesday, but the sale was delayed until next week at the earliest.

Proceeds will repay a tranche of variable-rate notes issued in 2016, as well as for general corporate purposes, including paying a capital dividend to shareholders.

Proceeds from the first jet-lease securitization of 2018 will be used to acquire 24 widebody and narrowbody planes contracted to 16 airlines in 14 countries.

In a rare example of a rating agency calling out a competitor, Fitch Ratings published an unsolicited report on the deal, which was rated by Kroll Bond Rating Agency; this caused some investors to take a closer look.

With ideal macroeconomic fundamentals of economic growth and low interest rates still in place, S&P Global sees no reason for issuance to slow in 2018.