A decision this month out from the Bankruptcy Court in Manhattan (SDNY) may have an impact that is significant the marketplace for education loan securitizations. Education loan asset-backed securities (SLABS) are unsecured, but market participants typically assume that the underlying figuratively speaking aren’t dischargeable in bankruptcy. a ruling that is new the main judge of this SDNY’s Bankruptcy Court challenges this presumption. (more…)
Student Loan Discharged in Bankruptcy – Just a Blip, or something like that larger?