Student-loan company Sallie Mae SLM -1.35% canceled a $225 million bond offering on Thursday after about two weeks on the market, according to people familiar with the deal. The move may mark a line in the sand: Investors whose thirst for yield has revived all manner of riskier asset classes decided they weren’t getting paid enough to buy at the offered price amid rising student-loan defaults.
More via Via Meadia and Instapundit. This is not quite the same problem as the toxic bad housing loans that triggered/heralded the financial meltdown in 2008; default or no, if you take out a student loan you’re almost certainly going to be on the hook for it until you pay it off, or you die. But that situation is because of political decisions, not financial ones. Lawmakers decided that the can could be kicked down the road… and who cares about deadbeats reaping what they sowed, anyway? Continue reading Sallie Mae forced to cancel student loan bond offering for lack of buyers.