Although previously regarded as a cookie-cutter asset class, the student loan product is suffering - like all the other major securitization sectors - from a lack of investor confidence. The task is to win these buyers back. Observers believe that the key to wooing the return of the investor base is a much greater understanding of the sector.
In this vein, Mark Daly, Steve O'Connell and Guido van der Ven - who were previously top officials in the largest student loan issuer Sallie Mae's corporate finance department - have formed a new company called Education Investment Group LLC (EIG). The three are hoping to use their combined many years of experience in Sallie Mae and the student loan industry to help restore liquidity and confidence in the marketplace.