MRU Holdings prices $140 million securitization

Recs

0

MRU Holdings Inc., a student lender operating under the name MyRichUncle, said Monday it priced a $140 million asset-backed securitization.

Loans MRU Holdings originated in 2007 and early 2008 were used as collateral for the deal.

Markets for asset-backed securities such as those backed by student loans have shrunk significantly since the middle of 2007 amid deterioration in the credit markets and rising defaults among many types of loans. Investors have shied away from all but the safest types of securities since then, making it difficult for companies like MRU Holdings to securitize pools of loans.

Companies such as MRU Holdings use the securitization market to raise new capital in order to originate new loans to consumers.

Student loan-backed securities volume declined 32 percent through July 3, compared with the year-ago period, according to JPMorgan Chase & Co. About $22.29 billion in student loan-backed securities have been sold through roughly the first half of the year.

Shares of MRU Holdings rose 8 cents, or 3.3 percent, to $2.50 in late morning trading.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 679383, ~/Articles/ArticleHandler.aspx, 11/10/2009 8:19:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Health-Care Reform: A Tale of Two Chambers

Related Tickers

11/9/2009 4:00 PM
JPM $44.35 Up +0.87 +2.00%
JPMorgan Chase & C… CAPS Rating: ***
UNCL $0.00 Down +0.00 +0.00%
MRU HOLDINGS, INC. CAPS Rating: *

Community: Investing Wiki

Term Of The Hour

International fund: An international fund is a mutual fund that invests in the stocks of foreign countries. They vary widely. Check the prospectus for details of which countries or groups of countries are represented in a given fund.

Want to learn more or edit this definition?
Click here to read more!