Darien Rowayton Bank has a obtained a higher credit rating (‘AA’ from DBRS) on its third securitization of private student consolidation loans, largely due to the fact that it has established a track record in lending to graduates capable of making payments.

But the $332.4 million DRB Prime Student Loan Trust 2015-D also has a new kind of risk: approximately 9.4% of the loans used as collateral are to medical school graduates who are serving their residency. Medical residency loans are risky because borrowers can extend repayment timelines, reducing cash flow in a securitization, according to DBRS.

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.