Finance

Trump Visa Curbs Derail Student Lender’s Securitization Push

A student looks for a seat ahead of lecture at a university.

Photographer: Brandon Bell/Getty Images

Mpower Financing’s bet on the American Dream — bundling the future earnings of international students into bondsBloomberg Terminal for Wall Street — is now being squeezed by America First.

The firm, which counts asset managers Tilden Park Capital Management and King Street Capital Management among its backers, provides loans to global students mostly studying STEM and business programs. It’s expanded using a classic Wall Street playbook: securitizing those loans into bonds, betting the high earnings power of its graduates will guarantee investor returns.