Market Rewards Navient for Proactive Investor Outreach

In its latest issue, Asset Backed Alert mentions that Navient’s recent student loan securitization came in at a better than expected cost of funding. Two triple AAA tranches priced 5 bps and 10-15 bps tighter than market expectations, respectively. The article stated:

The results signal that investors are becoming more comfortable with exposures to Navient, thanks in part to an effort by the company to extend the legal final maturities of its older FFELP-loan deals …  “Buysiders are beginning to take notice that Navient is making a concerted effort to calm their nerves,” one banker said.

On our math, it looks as if Navient has saved ~$400,000 in funding costs to the average life of these tranches. Working hard to please their investor base seems to be paying off!

Congratulations to Navient from DealVector!