UK opens new market for student loan ABS
The UK government has successfully issued its debut £1.7bn securitization of UK income contingent student loans. Although not to everyone’s taste, it was designed for specific groups of investors that have not typically bought ABS, and set a strong precedent for a planned series of follow-on transactions. Bill Thornhill reports.
On Wednesday afternoon the UK government priced Income Contingent Student Loan 1 (ICSL1) marking the conclusion of a four and a half year commitment for Barclays, which acted as arranger of the programme.