ABS Weekly: Student loan ABS market update

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ABS Weekly: Student loan ABS market update

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ABS Weekly

Student loan ABS market update

Spreads tighter, more to come 05 June 2026

This week, seventeen deals were priced for an aggregate principal balance of $10.3bn. Securitized Products Strategy

Secondary spreads were flat. We expect continued tightening toward 24-month lows, United States

with upside concentrated in sectors still >15bp wide to tights. ABS remains attractive vs.

IG corporates (basis ~43bp, above average), with potential further widening if IG Chris Flanagan

corporates grinds tighter. Within ABS, we favor selective rotation into AA–BBB for FI/MBS/CLOBofAS Strategist

incremental spread (basis slightly below average). Click links for ABS new issue volume +1 646 855 6119

and pricing by deal and ABS Spreads time series. christopher.flanagan@bofa.com

Theresa O'Neill

Student loan debt versus other consumer debt ABSBofASStrategist

We expect student loan credit metrics to lag other consumer debt types, reflecting the +1theresa.oneill@bofa.com646 855 9285

ongoing normalization following the end of the payment pause & on-ramp period. For Alvin Fung

federally held student loans, the latest data show 8.0% of borrowers and 5.6% of ABS Strategist

BofAS

balances are 91-360 days delinquent. We expect delinquencies for federal held student +1 646 855-9091

loans to continue to rise as the ~7.5mn borrowers enrolled in the now-defunct SAVE alvin.fung@bofa.com

plan transition into new repayment plans and reenter repayment. More broadly, the

employment situation for recent college graduates seems to have improved, which

See Exhibit 35 on page 26 for commonly used

should help performance of student loans. acronyms

Private loans versus FFELP loans Recurring charts & tables