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Corporate & Securities Law

: FinancialCounsel

J.P. Morgan Analyst Paints Bleak Picture For Investors In Student Loan Auction-Rate Securities

By James Eccleston

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News continues to be most bleak for those who were sold student loan auction-rate securities. 

Last month, a research report issued by J.P. Morgan credit analyst Alex Roever said, "We think it is highly unlikely SLARS issuers will call or restructure any of their existing debt in the way that many municipal ARS issuers are attempting to do...As a result, we estimate $65 billion to $70 billion of SLARS bought as short-term debt may not be saleable, and current investors are at risk of having to hold positions until maturity, which in a few cases may be almost 40 years away."

Source:  FinancialWeek

Full post as published by FinancialCounsel on May 22, 2008 (boomark / email).

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