CDOs/CLOs

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues 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 Citigroup 6,325.4 1 12.8 11 Deutsche Bank AG 4,798.0 2 9.7 6 Merrill Lynch 4,533.6 3 9.2 6 Morgan Stanley 4,342.5 4 8.8 4 Lehman Brothers 4,253.5 5 8.6 10 Goldman Sachs & Co 3,646.5 6 7.4 4 Countrywide Securities Corp 3,142.0 7 6.4 2 Royal Bank of Scotland Group 3,048.1 8 6.2 5 Barclays Capital 2,492.2 9 5.1 7 Credit Suisse 2,365.2 10 4.8 3 Industry Total 49,294.0 - 100.0 70 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 LLC 3,128.9 1 28.5 3 Goldman Sachs & Co 1,380.7 2* 12.6 1 Lehman Brothers 1,380.7 2* 12.6 1 Barclays Capital 1,343.3 4* 12.2 1 Morgan Stanley 1,343.3 4* 12.2 1 Credit Suisse 1,343.3 4* 12.2 1 JP Morgan 541.2 7 4.9 1 UBS 535.2 8 4.9 1 Industry Total 10,996.6 - 100.0 5 Source: Thomson Financial

auto ABS 12% credit card ABS 10% real estate ABS 67% student loan ABS 11%

Moody's Investors Service late last Wednesday put on watch for downgrade a handful of subprime lenders' servicing operations, helping to roil the already volatile ABX.HE 06-2 index, which broke below 80 last week. The move prompted perhaps the biggest concern among home equity ABS investors already holding securities to the forefront - that the recent challenging atmosphere for subprime lenders could bleed through to loan servicing quality. In subprime lending, servicer quality is considered one of the most crucial aspects of loan performance, particularly as borrowers' monthly payments go up as a result of rate resets and other structural nuances.

SunTrust Robinson Humphrey's CDO team has left the company, despite the firm's plans for growth in the sector in 2007 and a media push to promote it.

Home equity loan ABS, as usual, dominated new issuance volume last week, similar to the way that the mortgage market dominated news and investor concerns.

Allegheny Energy, which is preparing a $466 million transaction to finance the costs of construction on an emissions control facility at a West Virginia plant, recently specified the amount of registered bonds to be issued under one portion of its planned transaction.

The TABX index began trading Feb. 14 at spreads much wider than a number of market players had anticipated. While not as shocking as, say, Britney Spears' new buzzcut, aside from structural differences, the trend in the TABX so far could indicate that investors place quite a bit of value in a CDO manager's ability to handpick good credits and trade out of bad ones. The implied triple-A tranches of the TABX came out of the gate pricing north of 100, double-As between 600 and 800, single-As between 1,400 and 1,800, triple Bs at nearly 2,000 and double-Bs between 2,000 and 3,000 basis points, according to JPMorgan Securities analysts, who described the pricing divergence against the back of mezzanine SF CDO spreads as "almost shocking."

FinanSure Student Loans, a Chicago-based student loan provider, is preparing to launch a $925 million securitization deal primarily backed by FFELP consolidated education loans. This marks the student loan issuer's first time coming to the ABS market.