The Strength of Student Platforms in the Securitization Market

Panel entitled, "The Strength of Student Platforms in the Securitization Market." Panelists include: Morgan Edwards, CommonBond; Noah Cooper, Darien Rowayton Bank; Zander Rafael, Climb Credit; James Keller, College Ave Student Loans; Moderator: Henry Morriello, Arnold & Porter Kaye Scholer. Recorded at LendIt USA 2017.

In 2016 the student loan securitization market increased compared to 2015 and in 2017 the market has already been off to a good start; the panelists discuss the reasons for this trend of increased issuance including knowledge, confidence and a default rate of just 3 bps; in the case of the refinance product, supply has created the demand; panel also comments on the current regulatory landscape and the FFEL program (Federal Family Education Loan Program) which guarantees student loans; on the whole loan side, the panelists talk about the interest from investors, why they are deploying capital to the student loan market and the kind of returns they can expect; finally the panelists talk about risk retention and the importance of fintech in the origination of assets.