4 ms·
Let's say that one thinks eventually a large percentage of for profit private colleges will have to close their doors. (think small ones that no one has ever h
by ahnick 7y ago
Let's say that one thinks eventually a large percentage of for profit private colleges will have to close their doors. (think small ones that no one has ever heard of, not your Ivy's) What's the analog to The Big Short here?
- arthurcolle 7y agoThere are asset-backed securities called SLABS (student loan ABS) that I guess you could make some kind of credit swap out of if that's what you're into. Probably super expensive to construct such an instrument since it like isn't a super liquid market.
- wtvanhest 7y agoThat is one route, or I think the better route may be cds on revenue bonds for public or private schools. Should be cheaper cds, but just as damaged as the crisis rolls through
- arthurcolle 7y agoMind explaining this strategy a little bit more? I'm not really up to speed on any other fixed-income instruments outside mortgages.
- lainga 7y agoNot if you bet on the double-A tranches. Nobody will think to do that, not even Michael Burry.
- deepnotderp 7y agoAsset backed securities
- listenallyall 7y agowhy not just short their stock? a bunch are publicly-traded, DeVry, Strayer, Grand Canyon...