Verizon is readying another $1.3 billion of bonds backed by contract payments on customer cellphones, a new asset class that has proven popular with investors because of its high payment priority and potential for sizable issuance.

This is Verizon’s fourth deal overall; to date it is the only carrier in the U.S. to securitize handset financing, though bankers estimate annual issuance could grow to $15 billion to $20 billion a year once other carriers follow suit. Securitization offsets the increasing expense of allowing customers to pay for smart phones and tablets in installments, often with no down payments.

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