CDOs/CLOs

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Merrill Lynch 26,101.4 1 21.7 29 Citigroup Global Markets 14,027.9 2 11.7 22 Morgan Stanley 9,518.1 3 7.9 34 JPMorgan Securities 8,666.1 4 7.2 17 UBS 7,534.0 5 6.3 12 Wachovia Securities 7,322.7 6 6.1 13 Deutsche Bank Securities 6,774.1 7 5.6 16 Barclays Capital 6,487.7 8 5.4 9 Banc of America Securities 6,141.7 9 5.1 6 Bear Stearns 5,845.7 10 4.9 10 Industry Total 120,319.7 - 100.0 209 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues JP Morgan Securities 9,370.0 1 31.4 13 Banc of America Securities 7,265.0 2 24.4 13 Morgan Stanley 4,752.6 3 15.9 4 Citigroup Global Markets 3,700.0 4 12.4 5 Credit Suisse 2,842.6 5 9.5 4 Deutsche Bank Securities 2,300.0 6 7.7 6 ABN AMRO 2,242.6 7 7.5 2 Wachovia Securities 1,275.0 8 4.3 3 Lehman Brothers 1,000.0 9 3.4 2 RBS Greenwich Capital 775.0 10 2.6 4 Industry Total 29,805.3 - 100.0 42 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Countrywide Securities 16,370.7 1 13.0 17 Merrill Lynch 15,903.7 2 12.6 15 RBS Greenwich Capital 14,899.6 3 11.8 17 Morgan Stanley 13,137.2 4 10.4 14 Lehman Brothers 12,305.9 5 9.7 14 Banc of America Securities 12,158.1 6 9.6 14 Citigroup Global Markets 11,172.7 7 8.8 12 Bear Stearns 9,791.8 8 7.8 17 Deutsche Bank Securities 6,715.1 9 5.3 8 JPMorgan Securities 6,651.0 10 5.3 7 Industry Total 126,314.2 - 100.0 154 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Banc of America Securities 11,558.4 1 49.2 4 JPMorgan Securities 9,557.4 2 40.7 3 Barclays Capital 8,836.0 3 37.6 2 Credit Suisse 6,270.3 4 26.7 2 Morgan Stanley 6,270.3 4 26.7 2 Goldman Sachs 5,842.0 6 24.9 2 Deutsche Bank Securities 5,291.7 7 22.5 2 Wachovia Securities 4,806.0 8 20.4 1 Lehman Brothers 4,142.0 9 17.6 1 RBS Greenwich Capital 3,051.4 10 13.0 1 Industry Total 23,505.1 - 100.0 9 Source: Thomson Financial

auto ABS 8% credit card ABS 10% equipment ABS 2% real estate ABS 71% student loan ABS 9% trade receivables 0% utilities ABS 0%

Bank of America, JPMorgan Chase and two private equity firms bagged big game when they agreed to buy out Sallie Mae Corp. last week for $25 billion. As the four stake-holding companies now divvy up the spoils of the company, which managed $142 billion in education loans last year, ABS professionals have quickly concluded that the company's securitization activity will increase, not decrease. Spreads on existing SLM paper were in no danger of widening, at least not by press time.

Derivative Fitch last week said the string of so-called "first generation" CPDOs that have come to the market over the last nine months would not warrant a triple-A or even double-A rating using its own methodology.

Several key structured finance executives at HSBC have either resigned or transferred out of its New York office recently, in what some market observers say is the bank's effort to pull back from the subprime mortgage market after losses in that area of its business.

New York's financial markets are looking east for inspiration, and they've found it in the covered bond market. Investors like this product because it represents a way to invest in triple-A-rated or close to risk-free assets at attractive spread levels. Market sources say the benefits are clear for issuers: It is a source of diversification of financing.

Regulators and politicians seemed intent last week for HEL investors to share in the pain of subprime borrowers who are unable - or may soon be unable - to make their monthly mortgage payments.