The credit performance of private student loan ABS will stay weak in 2012 given the current different macroeconomic factors, Moody’s Investor’s Service stated in a report released today.
“Continued high unemployment combined with high debt burdens and declining income means that recent college graduates and, to a lesser extent their co-signers, will continue having difficulty repaying their student loans,” Moody’s Assistant Vice President Tracy Rice said.
For reprint and licensing requests for this article, click here.
Greenspan's 18 years as Fed chief, from 1987 until his retirement at the start of 2006, were marked by a stock market boom and low unemployment.
Respondents to an exclusive NMN survey lay odds on lower rates boosting housing despite stagflation and recession risks. Here's how the Fed's view compares.
Increases in gross domestic product and home sales expectations compared with April are the drivers of Fannie Mae's latest mortgage outlook for 2025 and 2026.
ABS overall should outperform, but risks remain in specific areas
Any risk of mis-matching of fixed and floating rates among the assets and transaction notes is minimal. Between 80%-90% of the notes pay a fixed rate, while 78% of the loans are fixed rate.
