2 ms·
True to some extent, but don't investors need some way to figure out what an ISA is worth when they buy it from a school? Assuming they can get access to the nu
by adrianmonk 7y ago
True to some extent, but don't investors need some way to figure out what an ISA is worth when they buy it from a school? Assuming they can get access to the numbers, wouldn't that valuation be based on stuff like graduation rates, placement, and alumni salaries?
If so, then if the school ever wants to sell ISAs again, then they have an incentive (at least indirectly) because future years' cash flow will depend on how well they perform on whatever stats ISA buyers look at.
- unlinked_dll 7y agoPardon the sarcasm Investors would never be fooled into purchasing garbage debt made to look great. And banks would never risk it for the biscuit since the government would never bail them out. Another way to look at the incentive structure is that they could be driven by volume and not caliber. It depends on how well investors are able to vet the ISAs and if the ones purchasing them are the ones left holding the bag when it goes up in smoke.