The market for private student loans: an analysis of credit union exposure, risk, and returns
Cullen F. Goenner ()
Additional contact information
Cullen F. Goenner: University of North Dakota
Review of Quantitative Finance and Accounting, 2018, vol. 50, issue 4, 1227-1251
Abstract Beginning in 2011, credit unions in the United States have been required to report in their quarterly call reports their holdings of private student loans. Since this time, private student loans have been the fastest growing loan product among credit unions. The empirical results here indicate credit unions respond to external market forces and internal exposure to interest rate risk in their decision to hold private student loans. The effect of which, to date, has led to lower returns on their assets and no effect on overall risk. Credit unions looking to diversify their loan portfolio should do so with caution. Private student loans being in deferral reduce both delinquency and charge-off rates, which will rise over time with their seasoning and as interest rates rise.
Keywords: Credit unions; Private student loans; Risk; Performance (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11156-017-0660-y Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:rqfnac:v:50:y:2018:i:4:d:10.1007_s11156-017-0660-y
Ordering information: This journal article can be ordered from
Access Statistics for this article
Review of Quantitative Finance and Accounting is currently edited by Cheng-Few Lee
More articles in Review of Quantitative Finance and Accounting from Springer
Bibliographic data for series maintained by Sonal Shukla ().