Market interest was strong and expectations high last week before Academic Loan Group priced its $1.3 billion ALG Student Loan Trust II.

The SLABS transaction was expected to do very well across all tranches because of the high-quality portfolio, according to a source familiar with the situation. To be sure, the deal received triple-A through single-A ratings on its various tranches from Standard & Poor's and was anticipated to price similar to Nelnet Inc.'s $2.4 billion transaction, which got done with very tight spreads last month, the source said.

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