SoFi Completes First Offering of Pass-Through Certificates

The $200 million offering included post-graduate student loan asset-backed certificates; they were rated single-A by DBRS; this is the first time the company has issued a rated pass-through certificate transaction and it is a first ever for a publicly rated transaction in the student loan space; according to the press release, “The Certificates are secured by a portfolio of fixed-rate loans originated through SoFi’s private student loan refinancing program and use a pass-through structure whereby all payments will be allocated to the Certificates until its balance is paid in full. Unlike traditional student loan ABS transactions, SAT 2019-C does not use overcollateralization or bond subordination as forms of credit enhancement.  The A rating assigned to the certificates by DBRS reflects the strong credit attributes of the borrowers. The portfolio has a weighted average credit score of 783 and a weighted average annual income of $175,746.” Source

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