Trapped In "Safe" Student Loan Debt
Five months after the collapse of the $330 billion auction-rate securities market,
bonds backed by student loans show no signs of recovering, and that means no new house for Martin Doolan.
Mr. Doolan said he bought the securities over the last two years through UBS AG because they were billed as easy to turn into cash, like money-market funds.
The former corporate turnaround executive delayed buying a new home in Dallas because
he can't access the $4.85 million he has in student loan auction-rate bonds without selling them at a loss of at least 20%.
The Nattering One muses... Student loans gone awry trap retirees in auction debt?
How many will be trapped in FNMA or FHLMC bonds that are paying a premium?
Eight little words: RUN FAST, GET OUT, WHILE YOU STILL CAN.
Hattip to Bloomberg.
bonds backed by student loans show no signs of recovering, and that means no new house for Martin Doolan.
Mr. Doolan said he bought the securities over the last two years through UBS AG because they were billed as easy to turn into cash, like money-market funds.
The former corporate turnaround executive delayed buying a new home in Dallas because
he can't access the $4.85 million he has in student loan auction-rate bonds without selling them at a loss of at least 20%.
The Nattering One muses... Student loans gone awry trap retirees in auction debt?
How many will be trapped in FNMA or FHLMC bonds that are paying a premium?
Eight little words: RUN FAST, GET OUT, WHILE YOU STILL CAN.
Hattip to Bloomberg.
Comments