Bruh. papers.ssrn.com/sol3/papers.cfm?abstract_id=3631953
Do you remember the scene from the Big Short where the guy tried to sell MBS to pension fund and he goes: “MBS are just mortgages and who does not pay their mortgage, right?”
The same thing in 2021: “SLAB’s are just loans which students are tied to them until they die, even if they don’t have a job, and who does not pay their student loans, right?”
Boom!
Student Loan Asset Backed Securities (SLABs): The Subprime Mortgages of 2021.
The SLABs Rabbit Hole Part 2: Conflicts of Interest, and the True Worthlessness of SLABs.
h/t Dnars
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