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Wall Street’s new raw material for bonds is your phone bill

Bloomberg

Loan payments to Verizon are whizzing by to bond investors.

Mortgages. Car loans. Even credit cards.

The many consumer loan products Wall Street has “securitized” — packaged up, sliced and diced, and sold to investors — have had their ups and downs over the years.

Now add to that list mobile-phone payments.

In July, Verizon VZ, -1.31% became the first company to sell a bond deal backed by monthly mobile phone payments. Wireless carriers have created such deals before, but have only sold them within bank markets. Verizon’s $1.2 billion sale into a broader marketplace was the first step into what many analysts believe could explode into a multi-billion dollar market within the next year.

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