South Carolina Student Loan Corp. last week closed a $150 million deal with a $40 million tranche benchmarked on the 90-day commercial paper index, a move that alleviated a good deal of the basis risk on the transaction and will likely set a trend for student loan securitizations going forward.

"I think that the large issuers of student loans would seriously consider having a CP index piece on their next deal," said Charles Ryan, syndicate manager for asset-backed securities William R. Hough & Co., which was the underwriter on the deal.

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