Student loan ABS remains the choice U.S. investment for the European buyside, as expressed by a group of portfolio managers at a panel on relative value in U.S. dollar securitization.

For one, student loan collateral is more conducive to the traditional European bid for long-dated, fixed-rate assets. Also, at a 20% conversion, student loan ABS draws less risk-weighted capital for banks than other ABS. Most of the panelists were not fans of credit card and auto ABS in the dollar market, which don't offer the reduced capital benefit and price too tightly; though clearly there have been a few U.S. transactions structured with European buysiders in mind, particularly on the credit card side.

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