CDOs/CLOs

Deutsche Bank and the Hispanic National Mortgage Association launched a joint venture that will finance mortgages largely to Hispanic immigrant borrowers who, for various reasons, have limited traditional credit profiles.

A number of employees, including two partners, have recently left residential mortgage financing and asset management firm The Winter Group. Sources close to the company adamantly deny the departures are related to any financial trouble whatsoever, although rumors are circulating that the firm is clamoring to keep up on high salary and office space expenses amid losses stemming primarily from its subprime second mortgage portfolio.

NovaStar Financial is planning to issue its first CDO next year, according to company executives. The move appears to shift the Kansas City-based subprime lender into a growing trend of subprime lenders and Wall Street investment banks seeking growth and cost efficiency through vertical integration.

It seemed like back to school time last week in the securitization sector, as no less than three student loan ABS issuers came to market with deals totaling about $3.5 billion. That accounted for almost one third of the total $15 billion expected from issuers last week.

Last week, Investment Dealers' Digest, a sister publication to ASR, published its

With many portfolio managers primarily focused on one type of capital, CDO manager Friedberg Milstein maintains that not every debt package calls for the same type of investment.

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Citigroup 10,940.0 1 14.4 18 JP Morgan 10,765.7 2 14.2 22 Wachovia Corp 10,448.2 3 13.7 18 Barclays Capital 8,026.2 4 10.6 13 Deutsche Bank AG 6,768.3 5 8.9 15 Banc of America Securities LLC 5,021.6 6 6.6 9 Credit Suisse 4,066.8 7 5.3 8 Royal Bank of Scotland Group 3,644.0 8 4.8 8 Merrill Lynch & Co Inc 3,290.4 9 4.3 6 HSBC Holdings PLC 3,227.9 10 4.2 4 Industry Total 76,024.1 - 100.0 81 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 Merrill Lynch & Co Inc 41,073.0 1 14.4 58 Citigroup 32,460.9 2 11.4 57 Deutsche Bank AG 26,581.0 3 9.3 54 UBS 20,852.1 4 7.3 58 Credit Suisse 20,453.3 5 7.2 30 Bear Stearns & Co Inc 17,688.6 6 6.2 36 Wachovia Corp 17,345.4 7 6.1 42 Banc of America Securities LLC 16,965.1 8 6.0 36 Morgan Stanley 16,376.1 9 5.7 63 JP Morgan 14,909.1 10 5.2 36 Industry Total 285,045.3 - 100.0 566 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 18,719.8 1 30.4 27 Citigroup 10,982.0 2 17.8 16 JP Morgan 9,874.7 3 16.0 22 Morgan Stanley 4,055.3 4 6.6 5 Deutsche Bank AG 3,924.9 5 6.4 12 Barclays Capital 3,373.8 6 5.5 8 HSBC Holdings PLC 2,749.9 7 4.5 3 Credit Suisse 2,285.0 8 3.7 10 Merrill Lynch & Co Inc 1,375.0 9 2.2 5 Wachovia Corp 1,124.9 10 1.8 4 Industry Total 61,622.9 - 100.0 93 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 2,125.0 1 18.4 3 Deutsche Bank AG 1,750.0 2 15.1 3 Banc of America Securities LLC 1,554.5 3 13.4 3 Barclays Capital 1,409.5 4 12.2 2 ABN AMRO 1,250.0 5* 10.8 2 Lehman Brothers 1,250.0 5* 10.8 2 Royal Bank of Scotland Group 1,000.0 7 8.7 2 Merrill Lynch & Co Inc 925.0 8 8.0 2 Citigroup 300.0 9 2.6 1 Industry Total 11,564.0 - 100.0 10 Source: Thomson Financial