3.17.23
In Research Corner, we see the waiting game playing out in student loans and student loan ABS (SL ABS). Performance for post-2010 private credit SL ABS and private credit refinancing SL ABS has been “solid” thus far, according to the S&P Student Loan ABS newsletter. The rating agency expects adequate levels of credit enhancement on investment-grade SL ABS to “absorb deterioration and remain stable.” High interest rates and the ongoing federal student loan repayment pause and interest waiver has dampened private student loan refinancing activity, negatively impacting new issue supply.