![]() SLABs that are seasoned enough to be releasing that excess cash, or close to be doing so, are particularly good candidates for residual securitization. The residual piece in a SLAB is fundamentally the equity tranche, the flows that are left over in a transaction after all payments have been made to investors and other relevant parties. With a WAL of 2.5%, the transaction had a 2.5% coupon. Bank of America Merrill Lynch was the lead.Ĭredit Suisse ABS Repackaging Trust 2013-A, meanwhile, amounted to $178 million. The coupon was 3.5% and weighted average life (WAL) was three years. Sallie’s transaction, SLM Student Loan EDC Repackaging Trust 2013, was for $225 million. Then Credit Suisse followed up on June 27 with its own residual deal. So when Sallie Mae priced a deal backed by the residual interest on existing student loan asset-backeds (SLABS) on June 10 of this year, it generated buzz, not least because it followed an aborted attempt two months earlier, in April. There are still portfolios of whole FFELP loans that have yet to be securitized, but, with no more supply on the way, many players have found that their time is better spent on other asset classes, particularly those with growth potential. Department of Education is the only entity making government guaranteed loans, banks have focused on making private loans. Less than half the FFELP figure - $191 billion - were held in securitizations at that time.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |