My contacts are stating the issue isn't that simple. The general consensus amongst investment banks is that the auction rate securities market for Student Loans in particular will never return. Those holding such assets will see their investments downgraded to a much lower value. Those investors currently holding ARS vehicles made up of student loans will have to "mark to market" to find the true current value. Once that can be established any companies holding this assets will have show the correction on their balance sheet as a decline in investment value. That newly established value will only be good if you can even find a buyer, which is highly skeptical at the moment. I have had very detailed discussion about the topic because by chance I have to very close friends caught up in them. They are holding Municipal ARS's which don't follow the same rules as the Student Loan ARS's. They are expected to get their money back within a year. The Student Loan securities are considered the worst of all ARS investments. Last week of the 100 Student Loan ARS's auctioned, 100% failed. That is not the case with the Municipals because they were packaged and sold to investors differently.

I've had this explained to me multiple times over the last few days and it's very complicated. I won't dare try to explain it all in detail. The information they provided me with was all I needed to hear. I will email PTSC in the morning. One of my contacts said the only hope for PTSC would be for their broker/investment bank to repurchase some or all at the newly re-evaluated price. Otherwise they are stuck with it until 20 or 40 years depending on the maturity. I didn't want to keep bringing this up but looking at the Q did not satisfy me. After looking at the Q, both came to the same conclusion. PTSC still appears to be holding $15.6 million in ARS's.