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The government owns student loans.
by cylinder 9y ago
The government owns student loans.
- ouid 9y agoA) not all of them. B) the government owned the mortgage debt, given that they paid it.
- cinquemb 9y agoI think the main question is how to get access to capitalize on the downside risks of A). - Find out who has exposure to student loans portfolios and what percent is non performing? - Find out what other assets A) is holding that will have liquidation pressure if *-swan occurs? - What extent is B) tied to A)? - What pressures B) would face long term due to non performance of student loans that would influence A) and the larger market of assets under the jurisdiction of B)? - How much could be made from theoretically capitalizing on the downside risks of A) vs other assets in the mean time?
- bb611 9y ago> The government owns student loans. To back up your point, the US federal government guarantees the vast majority of the student loan market: https://fred.stlouisfed.org/series/FGCCSAQ027S https://fred.stlouisfed.org/series/FGCCSAQ027S I believe the total student debt market is estimated somewhere between $1.3-1.4 trillion these days, so at least 77.5% backed by US taxpayers. I don't know what TARP topped out at, but I doubt it was 75% of banking assets.