Summary of SLM (Sallie Mae) 2025 Conference Call Company Overview - **Company**: Sallie Mae (SLM) - **Event**: 2025 Conference held on June 10, 2025 Key Points Company Evolution and Strategy - Sallie Mae has adopted a hybrid growth and capital return strategy, aiming for modest balance sheet growth post-CECL phase, with a target of mid- to high single-digit organic earnings growth and double-digit earnings per share growth over time [4][6] - In 2024, Sallie Mae achieved a 10% year-over-year growth in originations, exceeding initial expectations, and grew the balance sheet by approximately 3% [5][6] - The company exited a low-yielding legacy portfolio, resulting in a more significant growth in the PSL balance, estimated at around 5% [6] Federal Student Loan Reform - Anticipation of federal student loan reform is high, with expectations for meaningful changes that could impact the private lending market [9][30] - Sallie Mae believes that the current federal program allows excessive borrowing without proper underwriting, leading to unsustainable debt levels for students [9] - The company is preparing for potential reforms and is optimistic about the opportunities they may present [9][30] Competitive Landscape - Sallie Mae maintains a competitive edge with over 2,000 college relationships across the U.S., which is expected to continue benefiting both undergraduate and graduate loan segments [12] - The graduate loan market is currently limited, primarily due to competition from the federal PLUS program, which offers unlimited borrowing without underwriting [16][22] Credit Quality and Underwriting - The credit profile of graduate borrowers is generally stronger than that of undergraduates, as they typically have established credit histories [12][18] - Sallie Mae follows a risk-based pricing methodology and expects to maintain a low annualized net charge-off rate in the high ones to low 2% range [19][37] - Recent changes in underwriting practices are expected to yield benefits over time, particularly as newer cohorts enter repayment [45][46] Capital Markets and Loan Sales - Sallie Mae executed a $2 billion loan sale earlier in the year, achieving strong execution with nearly 10% returns [21] - The company plans to continue its loan sale strategy, which has been critical for managing balance sheet size and capital [22][25] - Market conditions have changed, leading to increased uncertainty, but there remains broad demand for the asset class [25] Strategic Priorities - The company has outlined four key strategic priorities: executing the core strategy, preparing for federal reform, exploring alternative funding sources, and optimizing education services to create additional revenue streams [30][52] - Sallie Mae is committed to meeting its guidance for the year and exceeding its five-year framework, with a focus on operational readiness for potential reforms [51][52] Market Trends and Future Outlook - The company is observing trends in the education market, including a shift towards nontraditional education programs, which are being evaluated for their return on investment [48][49] - Sallie Mae is optimistic about the potential for growth in the graduate loan market and the overall education financing landscape as reforms are anticipated [30][49] Additional Insights - The company has a low exposure to international students, as its programs require borrowers or cosigners to be U.S. citizens or legal residents [20] - The management is focused on creating a more resilient capital structure that is less dependent on market conditions, which could enhance earnings stability [31][52]

There are protests that continued throughout downtown Los Angeles. Overnight, this time less violent than what we saw over the weekend. Fewer clashes reported yesterday with law enforcement as groups marched across the city in protest of the Trump administration's immigration raids.Despite that, the White House deployed another 2,000 National Guard troops, bringing the total number to 4,700 Marines also were activated. California Governor Gavin Newsome says the deployment of troops is unnecessary and only s ...

V i e w p o i n t | 06 Jun 2025 16:17:32 ET │ 22 pages US Economics Weekly Fed on hold, but cuts still coming CITI'S TAKE An unchanged 4.2% unemployment rate and 139k new jobs is enough to keep the Fed on hold in June and July and we now expect policy rate cuts to resume in September. The unemployment rate would be closer to 4.6% if not for a drop in the participation rate and will likely rise in coming months. ISM services and manufacturing both came in below 50, suggesting a cooling economy. The Fed's Bei ...

Public Safety Concerns - The level of fear and terror among Angelinos is significant due to uncertainty about potential threats to their homes, workplaces, and schools [1] - This fear is reminiscent of a past event, suggesting a recurring pattern of anxiety within the city [1] Government Authority and Experimentation - The city is perceived as a test case for the consequences of federal government intervention and the removal of authority from state or local government [2] - There is concern that the city is being used as an experiment to assess the impact of such interventions, potentially setting a precedent for other cities [2]

Well, good afternoon and thank you for being here. I apologize. I'm going to have to uh I I'll give uh my my piece and then I'll uh go back on a conference call I I was on and have to go back on, but I'll be back uh after that for one-on- ones if uh if you have an interest.So, good evening and uh thank you. Thank you, Mayor Bass. Uh as of this afternoon, the Los Angeles Police Department is on tactical alert and in a state of partial mobilization.These designations are critical tools that allow us to expand ...

June 9, 2025 04:01 AM GMT Global Economic Briefing | North America M Idea The Weekly Worldview: Economics and Markets How our views on the impact of tariffs on the US and the Fed's path matter for our strategists' views on rates. M In last week's Weekly Worldview, we summarized our key convictions from the Economics mid-year outlook; this week we think through how the economic views translated into asset allocation. In general, our strategists' views align closely to ours and, in particular, the timing of t ...

No, he did not have grounds. This is not an insurrection or anything like a true rebellion. I mean, the instance that has happened before was in 1965, when President Johnson, then the National Guard in Alabama, because Governor George Wallace made it very clear that he was going to allow the attack of civil rights, peaceful protesting, civil rights workers.And it was a truly dangerous situation. That's the last time this happened. And nothing here is in comparison to the fact the situation of the office.The ...

[Music] With the big monthly CPI print on Wednesdays, investors are going to be laser focused on any clues as to tariff related inflation. But stepping back, what is the biggest driver of moves in stocks and bonds. Jobs, CPI, or the Fed itself.Today, we're going to check the scoreboard. I'm Jared Blicker, host of Stocks in Translation. We're going to show two charts with each of the three big market movers going back to the start of the October 22 bull market.And we start with the S&P 500, America's benchma ...

The Senate is starting to discuss the Trumpbacked tax bill passed by the House of Representatives last month. One part of the bill that has brought appeal is a no tax on tips provision. The policy would exempt up to $25,000 in tips from federal income tax for people making less than $160,000 in 2025.But there are some risks that Americans should be aware of. here to explain. We've got the debtfree guys, David and John Autton Schneider, co-hosts of the Living Not So Fabulously video podcast as well.David, le ...

Group 1 - The marijuana sector is currently experiencing a downturn in trading, with companies facing challenges in market performance impacting their stock prices [1][2] - Federal reform and the rescheduling of cannabis are seen as crucial for the industry's growth and for creating a safer investment environment [2][3] - Companies are strategizing and remaining patient, with optimism for future gains keeping investors engaged despite current market conditions [3] Group 2 - Greenlane Holdings, Inc. focuses on the development and distribution of cannabis accessories and vape devices across multiple regions including the U.S., Canada, Europe, and Latin America [4][6] - The company renewed its distribution agreement with PAX, which enhances its portfolio and strengthens its market position in the growing cannabis vaporizer market [7] - Jushi Holdings Inc. is a vertically integrated cannabis company involved in cultivation, processing, retail, and distribution for both medical and adult-use markets in the U.S. [9]