You are on a Wall Street Debt Capital Markets Group. You have a client looking for AAA rated student loan debt. You see 5 student loan bonds: a AA-rated BC, a A-rated Stanford, a AA-rated Vanderbilt, a A-rated Rice, and a BBB-rated Notre Dame. How can you create a AAA-structure out of these bonds? What can you do? There is a benefit to diversification. Blending two AA-credits like BC and Vanderbilt may be enough to richen the credit. Diversifying via much weaker credits, like Notre Dame, may actually result in a credit in-between. It is possible that a diversified portfolio of BC, Stanford, Vanderbilt, and Rice also works. The other tool to use would be a tranche. You could setup a subordinate debt piece that enables the senior debt to get a AAA rating. This could work well with a diversified pool of BC and Vanderbilt as well.