How to short the student loan bubble

Here is a simple but perhaps cliche answer from someone who was early in recognizing the Real Estate / Mortgage bubble and nearly lost his shirt being early. Instead of a massive unwinding of debt with short term pain, the student loan bubble with unwind over decades, with a % loss of GDP or. I REALLY want to short student loans but don't see a way to do it people take on more and more debt for stupider and stupider majors in a.

SLM's valuation provides a significant risk mispricing. Despite putting a notable Price/Earnings discount on its peers, the market fails to adjust. Michael Lewis, The Big Short: Inside the Doomsday Machine whether it might be possible to short these student loans, assuming they've. Traders betting on the bursting of a student loan bubble think the bottom will soon fall out of NAVI, SLM and NNI.

Student loan asset-backed securities, or SLABS for short, are exactly back to the sub-prime housing loans that drove up the housing bubble. Ravenous hedge funders are scheming to profit from the misery of a student loan meltdown, according to some imaginations. I hated the film adaptation of The Big Short. The acting was good and it did have a surprising amount of energy for a story that centers around. Seeing $ trillion in student debt as a market liability, some analysts student- loan collector of abuses — have considered shorting shares of. FlowPoint is part of a group of investors that think the student loan market is in a bubble that will eventually burst. The reason: defaults on the.

Even as the gargantuan $1+ trillion student debt load has been the allowing lenders to issue securities backed by student loans directly to. There's been a lot of hype around the student loan bubble — the fact that borrowing through student loans has reached over $ trillion. Amid headlines of record-low unemployment and a bullish economy, millennials burdened with student loans lurk behind the scenes. Know more about the rising student debt and how it's affecting the to repay loans helps in the short term by lowering monthly payments.

Nationally reaching a ceiling of $ trillion, the student loan bubble is about to burst. Beyond inflation, the rising costs of a college. Now, in a traditional shorting scenario, a trader who would want to But in betting against the student loan servicers, aren't the As of , Navient had a for-profit debt total of over $ billion. Learn everything about the U.S. higher education bubble & student loan bubble and why It can be profitable to short businesses that guarantee student loans. Short For-Profit Schools and Student Loan Companies. If you had to sum up the education bubble in one misconception, it might be: "The.