U.S. primary ABS issuance continues its slower, post-hurricane pace. Around $4 billion priced last week, a below-average amount, and this week is likely to see the same, said Standard & Poor's analysts today. The Pensylvannia Higer Education Assitance Agency plans to issue its $533.6 million PHEAA Student Loan Trust 2012-1 that will offer a single tranche that has been assigned a preliminary 'AA+ ' rating by S&P. Fitch Ratings will also rate the deal.
The trust collateral comprises Federal Family Education Loan Program (FFELP) loans, which are indirectly guaranteed by the U.S. Department of Education for a minimum of 97% of defaulted principal and accrued interest.