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    Jeff Adelson

    Research Analyst at Morgan Stanley

    Jeff Adelson is an Executive Director and equity research analyst at Morgan Stanley, specializing in coverage of major financial services companies such as Rocket Companies, Synchrony Financial, and Capital One Financial. He has generated widely referenced recommendations, including a Hold rating on Rocket Companies at a $16 target and a Buy rating for Capital One Financial at $261, demonstrating nuanced market valuation and risk assessment. Adelson began his career at Aite Group in 2007 before moving to JPMorgan Chase and JP Morgan India Private, and has been with Morgan Stanley since 2014. He holds a Bachelor of Arts in Economics from Cornell University and possesses FINRA-qualifying credentials required for research analysts at major U.S. broker-dealers.

    Jeff Adelson's questions to NAVIENT (NAVI) leadership

    Jeff Adelson's questions to NAVIENT (NAVI) leadership • Q2 2024

    Question

    Jeff Adelson sought more specific details on the timeline for achieving the company's significant expense reductions and asked about the competitive dynamics and capital allocation strategy for the in-school loan origination business.

    Answer

    CEO David L. Yowan detailed three parallel initiatives for expense reduction: outsourcing (well underway), BPS divestment (timing dependent on the transaction), and corporate infrastructure reduction (extending into 2025). He clarified that while employee count will drop 80-90%, the expense reduction is about removing entire categories of cost. Regarding in-school lending, Yowan stated Navient remains focused on its specific 'swim lane' of high-credit-quality, high-balance borrowers and will not chase volume in other segments, even as competitors exit.

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    Jeff Adelson's questions to NAVIENT (NAVI) leadership • Q2 2024

    Question

    Jeff Adelson requested more detail on the timeline for achieving expense reductions and asked if the 80-90% headcount reduction implies a similar drop in compensation expense. He also asked if a competitor's exit from the in-school lending market has altered Navient's strategy.

    Answer

    CEO David L. Yowan detailed three timelines for cost-cutting: outsourcing (well advanced), BPS divestment (depends on the transaction), and corporate overhead (longer tail into 2025). On in-school lending, he stated Navient will remain disciplined, focusing on its target 'swim lane' of high-credit quality borrowers rather than chasing volume in other segments, though it will seek to capture more share within its chosen niche.

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