RBC

In both scenarios of the 2025-1 series, the capital structure will issue notes through about eight tranches, including an overcollateralization piece representing 5.15% of the pool balance.

T-Mobile is broadly syndicating $500 million of securities, and the total size of the securitization is $561.34 million.

The bonds exist with several redemption provisions, including the first maturity date, a special redemption option from excess revenues, and a special mandatory redemption from excess revenues.

The transaction has a nine-month revolving period. All of the leases are closed end, where the issuer bears the residual value risk, and more of them can be added during that period.

The final maturity date is set in relation to the final payment of the notes in the most stressed scenarios, respectively, which is a departure from prior issuances.

The AA, A and BBB notes have 12.7%, 12.5% and 7.0% in credit support, which included excess spread.

All three tranches have a May 15, 2030 final maturity date and are expected to yield 5.4% on the three-month interpolated yield curve.

The top five issuers in the pool represent 4.73% of the pool, which is noticeably more diversified compared with the 12.50% concentration, according to Fitch's stressed portfolio at initial expected matrix point.

The amount of deferred loans allowed in the pool is capped at 70%, with at least 96% of them being cosigned. Also, no more than 6% of loans with a FICO score of less than 700 can be cosigned.

Credit strengths include a relatively fast amortization period, which can reduce exposure to loss risks, plus a collateral pool composed of frequently used, affordable smart phones.

On average, the borrowers have a non-zero FICO score of 723, the same as VZMT 2023-6, Fitch said. Accounts with upgrade eligibility account for 56.12% of the pool, slightly lower than the previous deal.

CEO Scott Thomson has said that changes to the bank's operations may include "end-to-end digitization" as well as centralization of its international unit, rather than running it on a "country by country by country" basis.

The deal has a sequential repayment structure and collateral with 168 months of seasoning. The loans are already past their peak default periods, which each typically occur three to five years after a borrower enters repayment.

The deal will issue two series of notes, which benefit from a reserve account with approximately $1.4 million, representing about 2.0% of the initial bond balance.

Canada's largest bank last month said it plans to cut as much as 2% of its full-time equivalent staff in the coming quarter after a surge in expenses weighed on third-quarter results.

The Class A note coupon initially will be linked to the USD Compounded Secured Overnight Financing Rate Index, a relatively new interest rate index. Royal Bank of Canada is the seller, servicer and administrative agent.

Banks like RBC and JPMorgan Chase can now more easily draw real-time FactSet data feeds into applications.

The deal is the first credt card securitization by anyone in 2019 and features two-year floating-rate notes from RBC's master trust.

RBC Capital Markets hired Paul Sheldon, founder of the advisory firm S L Capital Strategies, as a managing director in the municipal finance student loan group.

The RBC master trust's latest issuance of card receivables-backed bonds will be issued in split U.S.-and Canadian- dollar denominations. Comenity, through its World Financial Network trust, will be adding to its 10 outstanding deals with a $394m private-label card ABS.