Securitization of vendor financing in the telecom industry, via a pooling of finance loans and leases to end-users, has been going on for some time. Now, individual vendors, like Lucent and Nortel, are looking at ways of packaging up these loans in single-issuer securitizations for the term debt market to alleviate pressure on their balance sheets.

Banks, too, are exploring the viability of securitization for some of their telecom clients. The methodology has yet to be ironed out, but some bankers believe that securitization could prove a smart way for vendors to manage their financing risk.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.