Student loan ABS

FFELP, Stafford consolidation loans comprise the bulk of the collateral in the transaction.

A high representation of working professional degree holders among borrowers, most notably, medical doctors, boosts confidence in the underlying collateral.

Fitch's negative sovereign-issuer rating for the U.S. casts a negative rating outlook on ECMC Group Student Loan Trust (ECMC) 2021-1, due to DOE reinsurance.

Known as MOHELA 2021-3, the trust will issue a mix of fixed- and floating-rate notes from a capital structure with three tranches, or note classes.

The collateral is made up of private consolidation loans and private student loans that Wells Fargo, another initial note purchaser, had originated.

While the underlying pool of student loans is mixed, 96% of them are non-rehabilitated loans.

While the underlying pool of loans is of strong credit duality, concerns abound about how COVID’s economic impact could negatively affect pool performance.

KBRA says credit quality is assessed via the firm's internal assessments.

The loans, previously securitized in 2015, have a weighted-average interest rate of 8.57%, balances averaging $15,182 and remaining scheduled terms of 186 months.

Deals, trends and research in structured finance and asset-backed securities for the week of April 30-May 6