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The First Marblehead Corporation Message Board

  • teamonfuego teamonfuego Jun 20, 2013 1:48 AM Flag

    Securitization Market Opening Up

    (1) I confirmed that "Gary’s departure should not, in any way, impact our ability to re-enter the securitization marketplace."

    (2) I don't know if you guys ever noticed this but there was a exhibit that was excluded from public disclosure back in 2010 and the SEC granted exclusion through 2015. It was Exhibit 10.38 which can be found by googling it. The exclusion by the SEC was from last month. Here are details of the agreement:

    "THIS PRIVATE STUDENT LOAN PROGRAM AGREEMENT (this “Agreement”) is made and dated as of February 5, 2010, by and between the Pennsylvania Higher Education Assistance Agency (d/b/a American Education Services), a public corporation and governmental instrumentality organized under the laws of the Commonwealth of Pennsylvania, 1200 North Seventh Street, Harrisburg, Pennsylvania 17102 (“Servicer”) and The First Marblehead Corporation, having an address at 800 Boylston Street, 34th Floor, Boston, Massachusetts 02199 (“FMC”)"

    Well I just noticed that the Pennsylvania HEAA is looking to securitize quite a bit of an article dated just a couple of weeks ago by abalert. The headline id is 180893.

    I'm not quite sure if FMD will be involved but I do see the Penn HEAA's move as yet another encouraging sign that the securitization market is really opening up.

    Figured I'd share this with you all. I think most market participants are only looking at the current revenue stream/cash flow and not taking into account the dramatic improvements in the securitzation market and how much leverage is in this business if the securitization market gets back to just the early 2000's level. the kicker is they now have a growing traditional banking business that they never had before. If the securitization market gets back to what it was like well before the peak of the market, this business could be extremely profitable. I don't think the market is pricing this in.

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