Until recently private student loans were the laggards in the recovery of the U.S. securitization market, but demand is picking up.

So far this year, Sallie Mae has completed two private student loan asset backed securities (SLABS); the $2 billion SLM Private Education Loan Trust 2013-A in February and the $1.135 billion SLM Private Education Loan Trust 2013-B in April. Notably, the deals are the lender’s first to include subordinated tranches since 2007, an indication that investors are become more comfortable with the risk in these securities.

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