Third student loan sale stalled as UK waits for election clouds to clear
A third instalment of the UK Department for Education’s current programme of student loan securitizations has stalled, a casualty of a tight general election and volatile politics. Concerns about whether securitization gives government good value for money are a potential obstacle, while investors will have to weigh up an instrument highly geared to the fate of the UK economy. Owen Sanderson and Tom Brown report.
A special purpose vehicle for the sale was created this summer, but may ultimately never be used.
“It’s hard to see how any sale could take place, given the current political backdrop,” a source close to the government securitization programme, wrote to GlobalCapital.The UK government ...