'Challenging' market for investors as spreads go lower

By Jennifer Kang
15 Sep 2020

InSite Wireless Group has priced a $164m securitization, with its senior bonds achieving the lowest yield for a cell tower securitization this year. Sources have bemoaned rapidly tightening spreads across all sectors, ranging from cell tower to prime auto ABS, posing a challenge for investors looking for yield in securitization.

The Virginia-based issuer's five year class ‘A’ notes were priced at a 1.5% yield, the five year ‘B’ notes at 2.5% and the five year class ‘C’ notes at 4.3%. 

For comparison, InSite’s transaction in December 2018 saw the 6.8 year senior tranche price with a yield of 4.14% ...

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