Sallie Mae CDS Spike On Obama Tax Plan

26 Feb 2009

Credit default swaps on SLM Corp., commonly known as Sallie Mae, gapped out to 25 points upfront from 14 points earlier today on concern that U.S. President Barack Obama’s budget proposals will halt subsidies for student loan providers.

--Katy Burne

Credit default swaps on SLM Corp., commonly known as Sallie Mae, gapped out to 25 points upfront from 14 points earlier today on concern that U.S. President Barack Obama’s budget proposals will halt subsidies for student loan providers.

One New York trader attributed the widening to fear Sallie ...

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