Securitization as An Alternative Tool of Financing Student Loans ? A Case Study for CSN
Public SecuritizationStructured FinanceStudent Loan Asset-Backed securitiesCredit RiskTranchingManagement of enterprisesFöretagsledningManagementBusiness and Economics
The purpose of the study is to highlight the issue of student loans securitization, and assure the importance and benefits that could be realized by performing such a transaction. The methodology is a case study for The National Board of Student Aid. It is a qualitative study, mainly using interviews, literature and scientific articles. By using this information we construct a securitization transaction structure ?CSN 2006-1?, and conduct a cost/benefit analysis. The results of this study are that securitization could be an alternative way of financing for CSN and for the Swedish Government, and that it could be a way of transferring and eliminating credit risk. Additionally, securitization offers additional benefits for the government to reap.