A coalition of nearly 25 non-bank investors in student-loan backed auction rate securities released a whitepaper regarding a potential, immediate economic stimulus from a solution to the illiquid Student Loan-Backed Auction Rate Securities (SLARS) market.
The SLARS Coalition is working to draw attention to the problems of this marketplace and their broader economic consequences, and to work towards a constructive solution to the SLARS problem. Most of the coalition members are publicly traded companies holding in aggregate approximately $8 billion worth of illiquid SLARS.
The coalition commissioned a whitepaper from economists at the University of Delaware to investigate the simulative economic impact that would result if liquidity were restored to the $25 billion SLARS market, the findings of which are significant –potentially creating up to $63 billion of stimulus and up to 441,000 jobs.
