| The search for yield in an environment of low interest rates are pushing institutional investors such as U.S. pensions and wealth funds indirectly into the U.S. student loan market. These public investors have allocated swaths of capital to alternative investment firms like Apollo Global Management LLC through credit-related investment mandates.
For credit managers seeking yield, student loans seem attractive, especially high-quality consumer borrowers. Backing these Apollo funds are sovereign wealth funds, life insurance companies, endowments and pensions. The U.S. student loan market has mushroomed in size, as more young people attend university and tuition cost continues to increase. As of October 2014, the U.S. student loan market amounted to US$ 1.3 trillion which counts private loans without government guarantees...............................................Full Article: Source |