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-- President Obama meeting where -- slate of major college presidents today to help relieve the crushing one trillion dollars in total outstanding student debt.
Held by America.
But Daniel oddest -- -- capital management is a significant investor.
In the 242.
Billion dollar student loan market says the financial outlook for many students.
Is likely going to get a whole lot uglier for the next couple of years up.
-- don't let what is it that you do because.
Fred this is a bifurcated story you've got students sort taking on a lot of debt just to pay to get educated with the hope that it that a degree might help them further on down the want to get a job.
And then there's you the investor who buys and sells what has become a financial product.
-- -- that is the essentially.
There is you know after the some -- to -- alone and they go to school and -- just get capitalized.
A lot of these loans got up put together into and securitization like a mortgage backed security.
And and we trade these securitizations -- and they become tradable instruments and pension funds on an endowment film that.
And hedge funds eventually also trade -- as well now as they are securitized.
I'm guessing that their stock value goes down as people talk more about default.
Right absolutely the -- but the investors that are mainly involved in this that are pretty sophisticated investors and what to care about is.
Mostly default rates and you know and we look at.
What's going on in to these fools so what type of loans they are they have -- signers.
What kind of schools people wanted to go to for your -- -- to -- colleges.
When -- these loans issued if they were issued in 2003 and 2004 when the president and other people talk about forgiving student loans does that drive down the value of these stocks.
Absolutely not a silly of the stocks put off the bonds.
And an independent for talking about government guarantee loans or private student loans -- Two separate sectors.
I'm not sure the -- A couple will what do you see as high quality opportunities for investment and then which ones look like big red flags to you sure.
I mean now radical school vs -- -- -- -- MBA is well it's it's it's it's hard to pinpoint on a major.
You know people graduating right now from school were generally considered more at -- The people that graduated three or four years ago.
And if you look at -- you wanna look at people don't -- to professions that can actually pay a lot.
So you would look at things people are going oil and gas industry.
Doctors you know on things you might not want to look at our profession that potentially don't pay as much.
Doesn't mean people should fulfill their dreams they -- but they should also look at the -- of what about -- Law -- inside is a complicated subject you know while it depends what law school you go -- depends how you graduate but it's it's tricky subject I'm not gonna be the one -- saying don't go to law school.
But you gotta be careful how much spend doing so Daniel -- I'm sorry we have to shorten his segment because of the breaking news -- -- but we thank you for coming -- appreciate it thank you.
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