SLM Corp., better known as Sallie Mae, is marketing $1.1 billion of bonds backed by student loans that are eligible for funding under a Federal Reserve program, according to a person familiar with the matter.
Investors can get loans at attractive rates through the central bank's Term Asset-Backed Securities Loan Facility to purchase the bonds. The Fed set up the facility in March to help jump-start the securitization market.
The consumer loan-backed part of the $1 trillion program has reaped benefits with an uptick in issuance and tightening of spreads. The commercial mortgage-backed securities portion, included just this month, has yet to see much activity.