Ever wondered how you can get in on the student loan bonaza? Well, so did has done exactly that by building out a platform that allows lenders to issue securities backed by student loans directly to investors. The article notes that since 2008, has traded roughly $6 billion, but given the current size of the student loan marke, over $1 trillion, there's plenty of room to grow.which, the WSJ reports,
Some of you may recognize wine, fine art, diamonds, intellectual property and other so-called alternative assets. Nevertheless, this is a very interesting move on behalf of that could yield incredible results.as the firm who provided the market for the of Facebook shares prior to its IPO. And others may be rich enough to know for their
Now, at this point, you may be wondering, is this guy pitching? No, I'm not, but I'd be lying if I didn't say that I found them interesting, to say the least. What I'm suggesting is that this is a fun filled chance to short the hell out of other people's career dreams! Sadly, we won't have complete access to the host of geniuses out there who think their MFA in finger painting will get them paid more than the homeless guy pan handling outside of McDonalds:
Issuers will be able to sell securities backed by private student loans, which aren't guaranteed by the federal government, as well as older federally backed student loans known as Federal Family Education Loan Program (FFELP) loans. They also will be able to distribute servicing reports through the new platform, said Mr. Silbert.
Slightly disappointing to say the least because, I hear, all these "private" providers of student loans do some semblance of underwriting. Still, a very exciting chance get into an absolutely massive asset class.
What do you monkeys think? Is this a market you'd get into? If so, what kind of positions do you think you'd take and why?