CDOs/CLOs

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Deutsche Bank AG 2,400.7 1 18.3 4 Morgan Stanley 2,041.7 2 15.6 3 Barclays Capital 1,492.5 3 11.4 2 Credit Suisse First Boston 1,243.6 4 9.5 2 ABN AMRO 1,243.6 4 9.5 2 Citigroup 944.1 6 7.2 2 Banc of America Securities LLC 750.0 7 5.7 1 Lehman Brothers 725.8 8 5.5 1 JP Morgan 725.8 8 5.5 1 HSBC Holdings PLC 566.7 10 4.3 1 Industry Total 13,114.5 - 100.0 11 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 Lehman Brothers 45,141.4 1 11.5 83 Bear Stearns & Co Inc 36,779.6 2 9.4 79 Royal Bank of Scotland Group 33,836.8 3 8.6 56 Countrywide Securities Corp 32,034.0 4 8.2 39 Morgan Stanley 31,933.7 5 8.1 41 Credit Suisse First Boston 29,143.9 6 7.4 63 Deutsche Bank AG 28,399.1 7 7.2 53 Citigroup 21,633.4 8 5.5 45 Banc of America Securities LLC 20,787.4 9 5.3 45 Merrill Lynch & Co Inc 20,381.9 10 5.2 30 Industry Total 393,203.7 - 100.0 765 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 8,572.0 1 23.0 11 Banc of America Securities LLC 4,689.0 2 12.6 7 Morgan Stanley 3,883.6 3 10.4 4 Deutsche Bank AG 3,826.2 4 10.3 6 Credit Suisse First Boston 3,367.9 5 9.0 5 Merrill Lynch & Co Inc 2,965.8 6 8.0 3 UBS 2,527.7 7 6.8 5 Lehman Brothers 2,138.5 8 5.7 2 Goldman Sachs & Co 2,127.2 9 5.7 4 JP Morgan 1,808.5 10 4.8 4 Industry Total 37,327.3 - 100.0 30 Source: Thomson Financial

auto ABS 17% credit card ABS 8% global MBS 4% real estate ABS 58% student loan ABS 9% other 4%

HSBC Finance Corp.'s acquisition of once-harrowed credit card issuer The Metris Companies, makes Metris the latest in a long line of consolidation moves in the credit card sector. The consolidation streak has become so hot in recent months that further consolidation has become more of a question of when,' rather than if.' "This was kind of anticipated," said an ABS strategist.

CLOs remain a hot commodity in Europe, as both veteran and first-time managers have launched or are gearing up new vehicles for this year. This is in large part due to the positive credit risk profile and strong availability of leveraged loans in the European market. Also, the reasonably stable spreads offered by CLOs are attractive to fund managers, notes a recent report by Standard & Poor's.

Providian Financial Corp. launched four deals from its new de-linked credit card ABS trust last week, the first since Washington Mutual Inc. announced it would take over the company and its $18 billion credit card portfolio. All four single tranche were upsized and priced in-line with guidance.

Moody's Investors Service last week unveiled one in a series of CDO research and monitoring tools it plans to roll out this year. The tool - called Performance Data Services for CDOs - is an internet-based platform designed for investors to conduct trend and performance analysis on both individual CDOs and pools, according to the rating agency.

The U.S. ABS primary market hit the first week of August like a wall, generating only $7 billion in new issue supply. The market had been cruising along at a pace in the $13 to $14 billion range for most of July, but the summer doldrums just kicked in.

In the wake of credit enhancement reductions to one of Chase Manhattan Bank, N.A.'s credit card trusts, analysts with Citigroup Global Markets are predicting other credit card issuers are likely to seek similar reductions soon. "Given that one issuer has had its credit enhancement reduced, others are likely to pursue a request for credit enhancement reduction," said Citigroup analyst Mary Kane.