The Fed is now expanding that list of asset-backed securities to include collateralized car loans, credit card receivables, and student loans. It's doing so because the lack of demand for bonds backed by those assets has had a real political impact in an election year. Students can't get loans for American universities because investors won't buy bonds issued by the banks who made the loans to the students. No funding, no college.
Wednesday, May 7, 2008
Posted by Todd Andrew Barnett at 9:34 PM