@Chris Purcell it all depends on the waterfall and structure of the ABS and then whether or not the underlying is government guaranteed student loans or private student loans but when a student stops paying a loan the money comes from an interest reserve account.  

Anyone worried about things like the 1031 disappearing need to just calm down, not going to happen, when the writers of the tax code highly benefit from that provision. 

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

If you were not scared and had no doubts, that would be abnormal and cause for concern.Feel free to post information about the deal and we can help calm your fears (or confirm them).

Until we have a national leader who can be honest, calm, factual, empathetic, and who leads from the front, it is going to be an uphill struggle to fight this contagion .

The fear of runaway rates seems to have calmed down some lately though, causing a few of the former buyer pool to reignite their pursuit, and also giving confidence to a new pool of buyers and prospects.

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

Good riddance.But usually things calm down and we find this was just an overreaction, particularly if C&D move out...

Depending on how the waterfall is structured, the preferred return holders will have first rights to the cash flow, typically an asset manager fee is the only component paid before the preferred share holders.

Your mentor is a sounding board, there are so many little things that come up, having someone to call, and hold your hand will help--when there are tens to hundreds of thousands on the line,.. you need someone to help calm you down and stay on path, it's scary at first!!!