Spreads too wide for FFELP ABS, says JP Morgan

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By Ryan Bolger
27 Apr 2015

Investors are too concerned over low prepayment rates for securities backed by federally guaranteed student loans, according to JP Morgan.

Securities backed by loans originated under the defunct Federal Family Education Loan Program (FFELP) traded around 10bp wider than recent new issuance due to low prepayment rates by borrowers, JP Morgan analysts said in a report last Friday.

Low prepayment rates have

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