皇冠博彩app
热门标签

皇冠手机管理端(www.hg9988.vip):Student loan-backed bond sales plummet

时间:2个月前   阅读:3   评论:1

皇冠手机管理端www.hg9988.vip)是一个开放皇冠手机管理端即时比分、皇冠手机网址代理最新登录线路、皇冠手机网址会员最新登录线路、皇冠网址代理APP下载、皇冠网址会员APP下载、皇冠网址线路APP下载、皇冠网址电脑版下载、皇冠网址手机版下载的皇冠新现金网平台。

Student-loan relief: A graduation ceremony at the Delaware Stadium in Newark. Many borrowers are hesitant to refinance their federal debt with private loans as long as the promise of forgiveness is dangling over their heads. — AFP

WASHINGTON: Companies selling bonds backed by student debt have retreated from the market this year, as promises of loan forgiveness and higher rates deter borrowers from refinancing their loans.

The over-two-year freeze on federal student loan payments – which was extended again in April, relieving many borrowers – and the Biden Administration’s plan to formalise its long-awaited student-loan relief package has sent ripples across the private loan market this year, effectively diminishing it.

Student loan borrowers are hesitant to refinance their federal debt with private loans as long as the promise of forgiveness is dangling over their heads.

They have either held on to their federal loans or even paid down the private debt they owe after becoming flush with cash from Covid-era government stimulus cheques.

“It really doesn’t make sense for a federal borrower to refinance into a private student loan now,” said Theresa O’Neill, ABS strategist at BofA Securities.

As a result, the companies that provide that debt and then repackage it and sell it on as bonds in the asset-backed securities market have not had a lot to work with this year.

,

皇冠体育www.hg108.vip)是一个开放皇冠正网即时比分、皇冠官方的平台。皇冠体育(www.hg108.vip)提供最新皇冠登录,皇冠体育包含新皇冠体育代理、会员APP,提供皇冠官网代理开户、皇冠官网会员开户业务。

,

Sales of student debt-backed bonds have sunk to less than one-third of their levels compared to this time last year, according to Bloomberg data.

So far, companies have only sold US$5.2bil (RM23bil) in student loan asset-backed securities (ABS) in 2022, as opposed to US$16.8bil (RM74bil) of issuance at this point in 2021.

“Because of the payment moratorium and the potential forgiveness, it’s affecting the refinancing space because there isn’t a lot of refi volume,” said Amy Sze, head of ABS research at JPMorgan, in a phone interview.

“Now that the payment moratorium has been extended, and it could be extended again, borrowers are less likely to refinance their loans.”

Higher interest rates – 4.99% on undergraduate loans for the 2022 to 2023 school year, up from 3.73% last year – plus wider spreads on deals are not helping issuers either, as they have helped push up borrowing costs in the ABS market.

In May, student loan servicer Navient Corp paid a 4.16% coupon on the largest tranche of a US$714.6mil (RM3.16bil) deal, having paid 1.58% on the same tranche of a similar deal just six months earlier in November.

Only Sallie Mae Bank and Navient have arranged more than one offering each since January, as fewer borrowers see an incentive to consolidate their federal debt in the private market.

The slow pace of bond sales has led some banks to slash their student loan issuance predictions by at least half.

上一篇:欧博体育app官网:More than RM31 million lost through scams since January, say Pahang cops

下一篇:皇冠体育规则:Maxis takes up stake in retail analytics startup ComeBy

网友评论