The increase in student loan consolidation products is credit negative for private SLABS given that prepayments by high-quality borrowers will rise, according to a Moody’s Investors Service report released yesterday.
On Aug. 2 Sun Trust Bank launched a loan product that consolidates a borrower’s private student loans. Additonally, the second-largest private student loan lender Wells Fargo and numerous credit unions have also started offering private consolidation loans, the rating agency noted.
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Yields are soaring into the double digits on bonds and loans funding the AI infrastructure buildout. Bankers are finding it more difficult to offload risk to insurers and other investors.
Single-family mortgage real-estate investment trusts in the market for home loan assets face hurdles and selectively taking on leverage to keep buying.
The collateral pool includes 26 collateral interests backed by 26 commercial multifamily, industrial, hospitality, self-storage, and student housing properties.
The company has more than $400 million of outstanding ABS, and is now in talks with creditors over what happens to its remaining assets and operations.
The share of American households considered "financially vulnerable" rose to 17%, the highest level since at least 2018, according to the nonprofit Financial Health Network.
