Bill Ackman, last year’s best performing hedge managers is reportedly targeting student loan default as his next short opportunity. I agree. Preliminary names are DFS Discover Financial Services and SLM SLM Corp but we have not initiated any positions as more work is to be done.
By JOSH MITCHELL CONNECT More Americans are behind on student-debt payments than official measures suggest. JIM WATSON/AFP/Getty ImagesStudent loans are proving to be a much bigger burden on households than previously thought.Nearly one in three Americans who are now having to pay down their student debt–or a staggering 31.5%–are at least a month behind on their payments, new research from the Federal Reserve Bank of St. Louis suggests. That figure is far higher than official delinquency measures reported by the Education Department and the New York Fed. And it’s also likely the most accurate.
via The Student-Loan Problem Is Even Worse Than Official Figures Indicate – Real Time Economics – WSJ.