UK inflation reform to boost student loan ABS repayment

By Tom Brown
10 Aug 2020

UK student loan securitizations are set to repay faster if the government decides to reform inflation indices in 2030, benefiting junior investors. Other noteholders could see returns drop if the government opts for an earlier switch date, however.

Income Contingent Student Loan 1 (ICSL1) was intended to be the first in a series of deals which the UK government planned to use to raise more than £12bn over a five year period, starting in 2017.

The second deal came on schedule one year later, setting the government ...

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