With a refinancing wave currently in full swing in the student loan sector of the ABS market, Sallie Mae is in the market with its first-ever consolidation loan ABS and more are on the horizon, sources said. The eighth securitization from Sallie this year actually incorporates two other notable firsts: Sallie's first-ever auction-rate securities and its first foray into the European markets.

Totaling roughly $1.9 billion, $1.33 billion of the 2002-7 offering is term ABS, with the remaining $659 million being sold in the auction-rate market. The dollar-denominated classes follow the standard blueprint for Sallie transactions, with one, three and seven-year three-month Libor-indexed seniors. For the less myopic European appetite, Sallie has included a E500 million floating-rate A5, with a 10.8-year average life, indexed to three-month Euribor.

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