NEW YORK, March 4, 2013 – The reinvented stock market is now redefining the market for student-loan-backed securities. SecondMarket, which provides products and services to enable companies to raise capital, manage liquidity and communicate with stakeholders, announced today a new suite of products and services for student loan issuers. These issuers will now be able to access new pools of institutional capital, distribute reports to their bondholders, as well as utilize SecondMarket’s unparalleled secondary market expertise to purchase student-loan-backed securities.
SecondMarket has long been the industry leader in facilitating transactions in student loan-backed auction-rate securities. Now the company is leveraging its wealth of industry knowledge to provide student loan issuers with a complete suite of services unavailable on Wall Street. The student loan team at SecondMarket brings decades of experience in the sector, having collectively facilitated over $40 billion in primary issuances and $6 billion in secondary transactions. Although the “full service” solution is initially being introduced for the student loan sector, the model can serve as a blueprint for issuers of other asset-backed securities.
“As the recognized leader in the auction-rate securities market, we’ve developed extraordinary relationships in the student loan industry,” said SecondMarket Founder and CEO Barry Silbert. “Whether an issuer is raising capital, communicating with their stakeholders or looking for market intelligence, we will provide a complete set of services to meet all of an issuer’s transactional needs.”
Student loan issuers looking to raise capital can access the deep, curated pool of institutional investors that SecondMarket has developed over the past eight years. Historically, only a small group of investors have participated in student loan offerings. By leveraging new capital, student loan issuers can expand their investor base and receive more competitive pricing.
“This is a natural outgrowth of our successful trading business,” said Brendan O’Connor, Managing Director and the head of SecondMarket’s Trading team. “Student loan issuers have sought a trusted, ‘one-stop’ partner that can offer a comprehensive array of streamlined services, and they value the singular focus on customer service that SecondMarket provides. This initiative is the first of its kind in the industry.”
In addition to providing strong client service and investor introductions, SecondMarket will streamline the reporting process by assisting with the creation and distribution of reports through the secure, online SecondMarket platform. Moreover, as student loan issuers increasingly look to purchase third party-issued bonds, SecondMarket clients will receive sophisticated market intelligence to enable them to make informed investment decisions. SecondMarket will also continue to be the industry standard bearer in facilitating student loan issuer buyback transactions.
“We’re extremely excited to deepen our relationships with the student loan community,” said Silbert. “This new suite of services supports our corporate ethos of focusing on the needs of our issuer clients. It also creates a blueprint that we believe will resonate beyond student loans to all types of asset-backed securities.”
SecondMarket is the reinvented stock market. The company provides products and services that enable companies, community banks, student loan issuers and funds to manage liquidity, raise capital and communicate with their stakeholders. SecondMarket is backed by premier investors, including FirstMark Capital, The Social+Capital Partnership, Li Ka-shing Foundation, Temasek Holdings, New Enterprise Associates (NEA) and Silicon Valley Bank. SecondMarket is a registered broker-dealer and member of FINRA, MSRB and SIPC and a registered alternative trading system (ATS) for private company stock. For more information, please visit SecondMarket.com.