Make money student loan bubble

Posted: Wildd Date: 09.06.2017

Traders who shorted Fannie Mae FNMA , Countrywide and AIG AIG back in made a killing when the housing bubble burst. If the student loan bubble is the next to pop, the three stocks below could be the best shorts in the market.

Remember how banks relied heavily on income from mortgage-backed securities created from pools of terrible mortgage debt during the peak of the housing bubble? The loans these securities are comprised of yield about 2. Much like the banks selling mortgage-backed securities during the housing bubble, the problem arises for NAVI when student loan borrowers stop making their payments.

make money student loan bubble

But if the student loan market collapses, there is no question NAVI will be dragged down as well. SLM now produces private student loans that are not backed by the government. SLM has become a popular short among traders betting on a breakdown of the student loan market.

make money student loan bubble

One of the biggest student loan bears is hedge fund FlowPoint Capital Partners. NNI is another pure-play on student loans. The company makes money by managing a portfolio of student loan assets, servicing student loans and processing payments with its software.

How One Hedge Fund Is Betting Against The $ Trillion Student Loan Bubble | Zero Hedge

If you think the student loan market will soon come crashing down, NNI is coming down too. Why LinkedIn LNKD Is a Good Fit. Article printed from InvestorPlace Media, http: Financial Market Data powered by FinancialContent Services, Inc.

Shorting Student Debt Is The World’s Hottest Completely Hypothetical Trade | Dealbreaker

Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes. Breaking news sponsored by googletag. More on InvestorPlace 7 Monthly Dividend Stocks to Pay Your Bills Regularly Twitter Is Soaring.

make money student loan bubble

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