Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Sallie Mae Successfully Prices First Student Loan ABS of the Year

BY Business Wire | AGENCY | 07:10 PM EST

NEWARK, Del.--(BUSINESS WIRE)-- Sallie Mae , formally SLM Corporation (SLM), today announced the successful pricing of the first student loan asset-backed securities (ABS) transaction of the year by Sallie Mae Bank. The $618 million transaction was met with robust investor demand following its formal announcement earlier this week, resulting in broad distribution across a diverse institutional investor base.

Investor engagement throughout the marketing process validated the continued attractiveness of seasoned private education loan assets supported by Sallie Mae?s underwriting, servicing, and performance track record. The transaction?s pricing strength underscores the demand for high-quality collateral even in volatile market conditions.

?This transaction demonstrates strong investor demand, confidence in our private student loans, and in our credit performance funding strategy,? said Pete Graham, Chief Financial Officer, Sallie Mae. ?Achieving tighter pricing than our last on-balance sheet ABS deal despite ongoing market dislocation underscores the strength of our platform, and the durability of student loans as an asset class.?

The successful pricing supports Sallie Mae?s diversified funding approach and reinforces its position as a programmatic issuer in the student loan ABS market.

For more information, visit Salliemae.com.

Sallie Mae believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation (SLM) and its subsidiaries are not sponsored by or agencies of the United States of America.

Category: Corporate and Financial

Source: Sallie Ma

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article