Sallie Mae considering reentering corp bond market

NEW YORK (Reuters) - Sallie Mae, (SLM.N: Quote, Profile, Research) the largest U.S. student loan company, said on Friday it may issue corporate bonds for the first time since the first quarter of 2007 to meet its funding needs as the securitization market remains tight.

The company, legally known as SLM Corp, said in a regulatory filing with the U.S. Securities and Exchange Commission that it issued three asset-backed securities in the first quarter of 2008, raising $4.7 billion, compared to four deals raising $13 billion in the same quarter last year.

The company said it expects asset-backed securities to remain its primary source of funding, but amid tight market conditions it was looking at other sources of financing.

If the company issues unsecured bonds, it will likely have to pay more and borrow on less favorable terms than it has in the past, Sallie Mae said.

(Reporting by Dan Wilchins)