2018 may be the beginning of the end of an education finance system that has resulted in overburdened students and families struggling to pay back loans that were too high at their inception relative to the reasonable income potential of the degree earned. Change won’t come overnight, but potential solutions should be put in motion this year, mainly aimed at relieving the student loan debt burden.
Below are a few touchstones for change that would signal the beginning of the end of the current student debt cycle.
Under the proposed Promoting Real Opportunity,…
Familiarity might breed contempt, but it seems nothing brings out the detractors like success. After a meteoric rise, marketplace lending has had its share of challenges and scrutiny, but the future should still be bright for such an industry on the forward edge of technology and consumer needs. Yet marketplace lending seems to be ending 2017 under an unwarranted attack from regulators and commentators determined to find similarities in marketplace lending to the subprime mortgage market in the years leading up to the financial crisis.
Everything Subprime? I Don’t Think So
At Credit Chronometer,…
Joseph Cioffi recently sat down with Raul Panganiban of ValueWalk, a site covering the latest financial news impacting hedge funds and asset managers with an emphasis on value investing, for their podcast “ValueTalks.” Joseph and Raul discussed the importance of credit enhancements in subprime auto securitizations, and in particular, Joseph’s views regarding their vulnerability.
The discussion builds on Joseph’s thoughts first shared on a post on Credit Chronometer. Following the warnings in the post, new issuances have been marked by higher credit enhancements.
Listen to the full podcast here….
Forget Hamilton! Andrew Jackson has re-entered the nation’s consciousness, though it’s hardly been an auspicious return. Lately, he’s been seen photobombing one of the most polarizing presidents in modern history and next year he is supposed to be replaced on the $20 bill. All of the renewed attention has reminded people of the more unsavory historical accounts of Jackson’s life — from alleged trading of slaves to the Indian Removal Act. But the meteoric rise in the value of bitcoin should have the public thinking about another calamity Jackson is blamed for — the Panic of 1837….
The massive data breach at Equifax has quickly spurred a number of lawsuits on behalf of consumers. That was to be expected. Far more surprising is the fact that financial institutions have started to pile on, filing their own suits against the credit reporting agency. It’s a bold strategy, and one that carries considerable risk. Any financial institution that is claiming victim status in this disaster that has personally affected half the U.S. population, and that is competing with individual consumers for money damages, could see its efforts backfire. In fact, it is easy to imagine the financial institutions’ lawsuits drawing such unflattering attention to their dealings with credit reporting agencies that they redirect the public ire,…