Volatile prepayment speeds on student loans have made it difficult for investors to assess how ABS bonds will respond to prepayments. This is why Lehman Brothers created an interactive tool called SPREE that takes an investor's loan-level prepayment assumptions and translates them into deal-level prepayment speeds, which are also based on Bloomberg estimates.

"With the coming changes in the FFELP program and the growth of the private student loan market, it is increasingly important to accurately evaluate student loan WALs," Lehman Brothers analysts said. The investment bank introduced the product to investors last week.

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