Comments on: how do you sell short student debt loans ? http://www.bankruptcylegals.com/taxdebt/52/debt/how-do-you-sell-short-student-debt-loans/ Deep in debt? Facing Bankruptcy? Get the help you need now. Sat, 01 May 2010 07:15:18 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Peilthetraveler http://www.bankruptcylegals.com/taxdebt/52/debt/how-do-you-sell-short-student-debt-loans/comment-page-1/#comment-151 Peilthetraveler Wed, 10 Feb 2010 17:55:54 +0000 http://www.bankruptcylegals.com/taxdebt/52/debt/how-do-you-sell-short-student-debt-loans/#comment-151 Sell short sallie maes stock. Ticker symbol SLM. Sell short sallie maes stock. Ticker symbol SLM.

]]> By: nycigllc http://www.bankruptcylegals.com/taxdebt/52/debt/how-do-you-sell-short-student-debt-loans/comment-page-1/#comment-152 nycigllc Wed, 10 Feb 2010 17:28:55 +0000 http://www.bankruptcylegals.com/taxdebt/52/debt/how-do-you-sell-short-student-debt-loans/#comment-152 I would agree that SLM is one way to do it, but so is FMD. FMD has seen its shares decline dramatically, and it's entire business model relies on debt securitization, which is not happening and is a huge drag on earnings. However, I cannot understand why you would want to short student debt out of all possible debts. If you are unaware, student debt is one of the very few debts that cannot be forgiven, even through bankruptcy. Therefore, student debt loans are the least risky of all, as they have forever to try to collect loans, and reality is that the majority of loans (approximately 65%) that enter default are usually collected within 7 to 10 years after default. I just cannot see a valid argument for trying to short student debt, as default rates would be dramatically higher for other types of debts. Just another point to support that is that most people that take on loans generate enough income to pay for the debt, as the payments and interest rates are low. Therefore, credit card debt, or practically any other debt would be much more rewarding as a short position. I would also venture my opinion that you are probably pretty late to this party, given that the problems in the credit markets have been very pronounced for nearly six months now, and all of the smart money has probably been in and made the easy money by now. I would much rather have a long position in FMD than I would a short position, as 1. all of the bad news has been factored into the stock price for months, and 2. any good news that is announced will cause a dramatic pop in the stock price. Just take a look at what happened when Goldman announced they were going to buy stock in FMD, shares rose over 60% that day alone, that's one horrible short position. I just think there are better opportunities out there, but they are at best, risky, as the news has been out for a long time now, and much of the bad news has been factored in for a while. If you plan on being short SLM or FMD, you might want to consider hedging the position, as any position in either of these companies, long or short, is risky now. In all sincerity, I would like to hear why you picked student loans, as its not a very thought about topic. Just my opinion, I hope it helps. Best of luck! Brendan Prewitt I would agree that SLM is one way to do it, but so is FMD. FMD has seen its shares decline dramatically, and it’s entire business model relies on debt securitization, which is not happening and is a huge drag on earnings. However, I cannot understand why you would want to short student debt out of all possible debts. If you are unaware, student debt is one of the very few debts that cannot be forgiven, even through bankruptcy. Therefore, student debt loans are the least risky of all, as they have forever to try to collect loans, and reality is that the majority of loans (approximately 65%) that enter default are usually collected within 7 to 10 years after default. I just cannot see a valid argument for trying to short student debt, as default rates would be dramatically higher for other types of debts. Just another point to support that is that most people that take on loans generate enough income to pay for the debt, as the payments and interest rates are low. Therefore, credit card debt, or practically any other debt would be much more rewarding as a short position. I would also venture my opinion that you are probably pretty late to this party, given that the problems in the credit markets have been very pronounced for nearly six months now, and all of the smart money has probably been in and made the easy money by now. I would much rather have a long position in FMD than I would a short position, as 1. all of the bad news has been factored into the stock price for months, and 2. any good news that is announced will cause a dramatic pop in the stock price. Just take a look at what happened when Goldman announced they were going to buy stock in FMD, shares rose over 60% that day alone, that’s one horrible short position. I just think there are better opportunities out there, but they are at best, risky, as the news has been out for a long time now, and much of the bad news has been factored in for a while. If you plan on being short SLM or FMD, you might want to consider hedging the position, as any position in either of these companies, long or short, is risky now. In all sincerity, I would like to hear why you picked student loans, as its not a very thought about topic. Just my opinion, I hope it helps.

Best of luck!

Brendan Prewitt

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