As a result, investment banks were forced to keep tens of billions
of dollars of loans on their balance sheets.
«We continue to grow assets, but the revenue
per dollar of loan under management is declining due to the pricing pressures in the market.»
School Teachers • Engineers • Accountants • Lawyers • Nurses • Real Estate Agents • Retirees • Insurance Agents • Bankers • Mortgage Brokers... to name a few of those who currently make up the over 8 million
dollars of loans entrusted to our company.
And then it makes more money
per dollar of loans it makes because it receives a high yield for these loans while simultaneously charging off a lower than normal amount of each loan each year for its losses.
Eventually, the federal government will either have to make good on hundreds of billions
of dollars of loans or force banks and bond investors, who purchased securitized student loans, to take big losses.
The 10 - year U.S. yield, against which trillions of
dollars of loans and investments around the world are priced, has risen 55 basis points so far this year.
But still, knowing that you're tied to tens of thousands of
dollars of loans can be stressful, and some cosigners would like nothing more than to be released from their duty.
«Current delinquency rates are well above normal levels, and analysts say hundreds of billions of
dollars of loans may be difficult to refinance in coming years.
Many funds are buying debt at a discount from investment banks stuck with billions of
dollars of loans they can't securitize.