When Sallie Mae spun off its student loan servicing business this year to focus on making private loans, it said that it would sell a portion of the origination. A pretty large portion, as it turns out.
The company said today it had completed its first private student loan securitization as a standalone company; the deal, SMB Private Education Loan Trust 2014-A, is backed by approximately $380 million of Smart Option Student Loans. Though the issue has a public credit rating, from Standard & Poors, it appears that it was a custom deal. All of the securities, including the entire residual interest in the loans, were privately placed with a single, third-party investment manager, according to the company statement.