Sallie Mae will issue at least $6 billion or go up to $10 billion of SLABS this year. However, Kenneth Fischbach, director of capital markets at the firm, is envisioning around $8 billion of SLABS issuance from Sallie in 2012. These remarks were made at the American Securitization Forum annual meeting held this week in Washington D.C.
Sallie Mae has issued around $5.3 billion thus far. Of that total, $2.8 billion were backed by FFELP loans while $2.8 billion were collateralized by private credit. Securitization continues to be a key part in the company's liability structure, although Fischbach said that the student loan lender is strategic about its distrubution given recent market volatility.
Sallie Mae's latest transaction is a $1.135 billion securitization of student loans. The privately placed deal called SLM Private Education Loan Trust 2012-C will offer investors two senior notes that have been assigned a preliminary rating of 'AAA' by Moody's Investors Service.
The company is projecting $3.2 billion of private student loan originations in 2012. Last year, the ABS issuer originated $2.7 billion in private education loans, increasing from $2.3 billion in 2010.