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There 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. Probab
by arthurcolle 7y ago
There 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.