CIT Group, which has securitized FFELP loans in the past, is preparing to launch its first private student loan ABS deal. Deutsche Bank is expected to be lead manager on the $95.1 million PARTS Student Loan Trust 2007-CT1 transaction. The portfolio's underlying loans carry a weighted average FICO score of 741, and among other structural features has a pledge fund provided by the Lutheran Education Assistance Resource Network.
The shifting of seats has begun at trading desks in the ABS market amid the fallout in the subprime mortgage sector. Word has it that JPMorgan Securities' ABS trading desk recently recruited Colin Sheen, a mortgage trader from Merrill Lynch, as well as two traders from Banc of America Securities. Before joining Merrill Lynch, Sheen worked at Morgan Stanley.