Is it possible to do leveraged shorting of student loans?

>betting against loans backed by Uncle Sam himself

WEW LAD

WEW

>>1744828
>watches The Big Short
>'student loans are the new version of the housing bubble'
Starter Pack

>>1744834
just wew

>>1744828

Of all the posts ever made on this board, this has to be the stupidest of them all.

>>1744828
So you want to bet against a loan where even if you file bankruptcy you still have it? Good luck

>>1744834
If you win you'll have enough money to buy all the preps you need.

Step 1. Buy up student loan debt.
Step 2. Ask a bank or other financial institution to sell you a credit default swap covering the student loan debt you own.
Step 3. Somehow cause students to default on their loans even though student loan debt isn't even discharged by bankruptcy.
Step 4. Be compensated.

As long as student loans are not being defaulted on, you need to pay a fee to the institution you bought the swap from. If and when student loan debt is defaulted on (how?) you will get essentially an insurance payout, but until then you have to pay premiums.

>>1744828
Fucking assholes on this thread won't even attempt to answer the OP's question.

Who said he was trying to short the actual loans.

OP, just think what would suffer if the kids are in financial trouble. They must pay the loans back, but they don't have money for iphones and all that other shit they buy with discretionary funds.

So short AAPL and whatever else you think will get hit when the kids run out of money.

>>1745328
Apple, starbucks, netflix, vaping stuff

>>1745328
99% of people I know would spend their last dollars left on Starbucks or their iphone app store than paying any bill.

1. Borrow money (leverage)
2. Use it to gibs margin so your broker doesn't skullfuck you immediately
3. 'Sell to open' is the order type you're looking for; sell shares of your preferred student-loan bank
>a good idea here would be to look up research on who does most of those loans....start with say SOFI and work out
4a. Lose money hand over fist ("margin call")
4b. "Buy to close" if you managed to get lucky and are in the black.

Particularly aggressive move. I wouldn't do it unless you know someone at fannie or freddie and have a line on some deep shit going down
>but thats a felony