1 / 12

Student Loan ABS Sector

Student Loan ABS Sector. Moderated by: Linda Stesney, Managing Director. American Securitization Forum January 30, 2006. Our Panelists. Sharon Asch—Director ABN AMRO Inc. John Hupalo—Executive Vice President Group Head, First Marblehead Corp. Leo Subler—Managing Director—Sallie Mae

Download Presentation

Student Loan ABS Sector

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Student Loan ABS Sector Moderated by: Linda Stesney,Managing Director American Securitization Forum January 30, 2006

  2. Our Panelists • Sharon Asch—Director ABN AMRO Inc. • John Hupalo—Executive Vice President Group Head, First Marblehead Corp. • Leo Subler—Managing Director—Sallie Mae • Amy Vespasiano, Director—Lloyds TSB Bank • Linda Stesney—Managing Director, Moody’s Investors Service

  3. Our Goals • Summarize 2005 Issuance and 2006 Outlook • Review Impact of Deficit Reduction Act of 2005 on Student Loan ABS • Perspective on Private SLABS • Credit and Cash Flow Analysis on Private SLABS

  4. 2005 Highlights • Record Issuance--$73.3 Billion • FFELP Consolidation Loans Dominated--$38 Billion • Private Loan Securitized Volume--$9.4 Billion • Deficit Reduction Act of 2005

  5. Student Loan ABS Issuance

  6. 2005 Private Loan Volumes

  7. Consolidation Loan Volume

  8. Deficit Reduction Act of 2005—Key Proposals • Reduce government guarantee • (from 98% to 97%; from 100% for Exceptional Performers to 99%) • Stafford and Plus Loans go fixed rate (6.8% and 8.5%, respectively)—SAP continues to float • “Floor Income” rebated back to government • =excess of borrower rate over quarterly SAP

  9. Deficit Reduction Act of 2005—Key Proposals (cont’d) • Eliminates in-school consolidation and virtually eliminates two-step consolidations • PLUS loans available to grad and professional students • Loan limits increased on Staffords • Recycling of 9.5% loans virtually eliminated

  10. Know Your Audience • Q1: Which category best describes you role in student loan ABS? • Investor • Intermediary • Issuer • Other

  11. Know Your Audience (cont’d) • Q2 Describe your exposure to student loans— • I am considering investing in student loans and want to learn more about the product • I already invest in student loans but want to deepen my understanding of: • A. FFELP Loans • B. Private Loans --Student loans make up a significant portion of my portfolio

  12. Q3 Audience Follow-Up • In 2006 do you expect to allocate more investment dollars to Student Loan ABS? • I will increase holdings in FFELP ASB • I will increase holdings in private loan ABS • I expect to decrease holdings in FFELP ABS • I expect to decrease holdings in private loan ABS • I expect to maintain the same allocation

More Related