FFELP student loan ABS collateral performance has converged in recent years due to the growing use of income-based repayments (IBR). Wells Fargo structured products analysts suggest that this convergence should spur investors to reassess their "old school" prepayment pricing assumptions.
Principal paydowns are more similar than different, despite the various prepayment rates among FFELP SLABS collateral, according to a recent Wells Fargo study.
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