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LogoutABSs can be backed by either government or private student loans, which are guaranteed by the US Department of Education. The former has a stronger repayment track record and is less likely to default. There are generally three tranches in an ABS: class A, B, and C. The senior tranche, A, is usually always the biggest and is designed to have an investment-grade rating to appeal to investors. The B tranche provides a greater yield than the senior tranche due to its poorer credit rating. The C tranche has a worse credit rating than the B tranche and may be unable to be sold to investors due to its poor credit quality. The issuer would maintain the C tranche and bear the losses in this situation.