Until recently, the residual interest in student loan securitizations was a tough sell, but there have been at least two issues of bonds backed by excess cash in these deals, and Fitch Ratings expects to see more.

In a report published today, Fitch said that a number of seasoned student loan securitizations have been, or are approaching the point of, releasing excess cash, making them suitable candidates for residual interest securitization. Fitch Ratings has rated two such transactions, one backed by the residual interests of multiple Federal Family Education Loan Program (FFELP) trust and one backed by 99% of the residual interest of a single private SLABS trust.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.