Already a Bloomberg.com user?
Sign in with the same account.
Sept. 29 (Bloomberg) -- SLM Corp., the student lender known as Sallie Mae, plans to sell $817 million of bonds backed by student loans after relative yields jumped as Europe’s debt crisis roiled credit markets.
The securities will be tied to debt guaranteed by the U.S. government, according to a regulatory filing today. JPMorgan Chase & Co. and Royal Bank of Scotland Group Plc are managing the transaction for the Newark, Delaware-based company, the filing said.
Sallie Mae last sold similar debt on May 19, according to data compiled by Bloomberg. About $14 billion in asset-backed bonds tied to education loans have been issued in 2011, or 12 percent of asset-backed securities sold this year, Bloomberg data show. Approximately $51 billion of total issuance is tied to auto debt.
Securities backed by student loans are yielding 188 basis points, or 1.88 percentage points, more than Treasuries, from 168 basis points on June 30, according to a Bank of America Merrill Lynch index. Spreads expanded to 192 basis points on Sept. 12, the widest since February, the index data show.
--Editors: Pierre Paulden, Mitchell Martin
To contact the reporter on this story: Sarah Mulholland in New York at email@example.com
To contact the editor responsible for this story: Alan Goldstein at firstname.lastname@example.org