They don't beat around the bush when they're talking to a particular audience. Today Bloomberg published an article, "Discount ABS May Benefit From Student Defaults, Citigroup Says," stating, "Discounted asset-backed securities tied to government-guaranteed student loans could benefit from defaults, according to Citigroup Inc. (C)."
When they talk about government-guaranteed student loans, they are referring to the Federal Family Education Loan Program (FFEL). FFEL is no longer in existence, thanks to the Obama administration, but there is still billions and billions of dollars worth of outstanding loans through the program.
Does this mean we'll see an acceleration of defaults, because this will help investors?
Great system we have here, you know? They are openly talking about the benefits of people defaulting.
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