Fiber ABS Sector Overview: Growth drivers, issuer tiering and relative value

Research evidence excerpt

Fiber ABS Sector Overview: Growth drivers, issuer tiering and relative value

Global Markets Research

Securitized Products Special Topics 15 July 2026

Securitized Products - North America

Research AnalystsFiber ABS Sector Overview: Growth drivers,

US Securitized Productsissuer tiering and relative value

Paul Nikodem - NSI

paul.nikodem@nomura.com

+1 212 667 2130

Fiber ABS issuance has surged from $4bn in 2024 to $13bn in 2025 and is on track to Rohit Sinha - NSI

reach $20bn in 2026, driven by two structural catalysts: rising consumer broadband Rohit.Sinha@nomura.com

adoption and AI buildout demand. 9 new issuers have entered the market since 2025, +1 212 298 4905

bringing the total number of issuers to 16. For bond investors, issuers could be tiered by Chinmay Kulkarni - NSI

residential versus enterprise exposure, geographic footprint, customer concentration and chinmay.kulkarni1@nomura.com

contract length and we discuss these factors in a later section. + 1 212 298 4598

Looking at relative value, Fiber ABS has similar or wider spreads versus comparable

ABS/RMBS products. DSCRs are significantly higher than SFR, and unlike Data Center

ABS—its closest AI-linked peer—Fiber ABS benefits from greater tranche thickness at

similar ratings.

Please refer to our primer on FiberABS.

Two pillars of issuance growth: Consumer Broadband and AI

Demand

Over the past two years, Fiber ABS has become one of the fastest growing ABS sectors,

with issuance rising from $4bn in 2024 to $13bn in 2025—and issuance in 1H 2026 has

already reached $10bn. Two structural catalysts are driving this expansion:

increasing consumer preference for faster broadband options and the sharp ramp

up in AI-driven demand. We believe both these drivers will continue to drive issuance