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 12,023.7 1 12.0 19 Morgan Stanley 10,411.8 2 10.4 12 Royal Bank of Scotland Group 9,077.9 3 9.1 17 Lehman Brothers 8,566.3 4 8.5 22 Credit Suisse First Boston 8,509.2 5 8.5 21 Bear Stearns & Co Inc 8,467.3 6 8.5 16 Merrill Lynch & Co Inc 7,976.1 7 8.0 9 Countrywide Securities Corp 7,336.0 8 7.3 7 Citigroup 6,151.8 9 6.1 14 Banc of America Securities LLC 4,862.7 10 4.9 11 Industry Total 100,261.7 - 100.0 150 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 2,368.0 1 21.5 3 Citigroup 1,830.0 2 16.6 3 Credit Suisse First Boston 1,645.9 3 14.9 2 Morgan Stanley 1,540.6 4 14.0 1 UBS 1,447.2 5 13.1 3 Lehman Brothers 1,012.4 6 9.2 1 Deutsche Bank AG 817.2 7 7.4 2 JP Morgan 317.2 8 2.9 1 Goldman Sachs & Co 40.0 9 0.4 1 Industry Total 11,018.5 - 100.0 9 Source: Thomson Financial

auto ABS 17% credit card ABS 4% enterprise finance ABS 0% equipment ABS 2% global MBS 7% real estate ABS 60% stranded cost ABS 2% student loan ABS 8%

While most ABS sectors have so far equaled or outpaced their 2004 year-to-date issuance volumes, the credit-card sector has been conspicuously absent from the party with less than one-third of the issuance seen at this time last year. While theories abound for the dearth of credit card deals, the paltry numbers have left analysts scratching their heads. Some say, however, that the sector will correct itself and even beat last year's $52 billion total.

The Public Utility Commission of Texas approved CenterPoint Energy Inc.'s request to securitize up to $1.8 billion in stranded cost ABS last week, clearing the way for a deal which the issuer hopes will occur as soon as possible. Some hurdles do remain, however, as the issuer has yet to officially select an underwriter for the transaction.

After being granted the status of a Nationally Recognized Statistical Rating Organization by the Securities and Exchange Commission last week, A.M. Best Co. intends to penetrate the securitization and banking arenas, while plans to broaden its scope in the insurance industry remain the ratings agency's main goal.

Business Loan Express priced a $102 million offering backed by the non-government guaranteed portions of Small Business Association loans - dubbed SBA 7a loans - with WestLB making its debut as lead manager on a BLX transaction. Previously, Wachovia Securities had acted as lead, with WestLB filling the co-manager role.

The U.S. primary ABS market had another bustling week to once again price upwards of $9.3 billion as of Thursday's market close, with the home equity sector accounting for $5.5 billion of new-issue volume. With the heavy new issue calendar dominating the landscape, there were conflicting reports on secondary volume. "Wednesday was a very active day in the secondary market, led by profit takers in all asset classes. For the first time in the past couple of weeks, the selling was met with widespread customer interest, while primary spreads continued to grind in tighter across ABS sectors," said Credit Suisse First Boston analysts in a report.

High yield CBOs - which comprise less than one-quarter of the broader CDO universe - accounted for close to three-quarters of materially impaired securities in the U.S. CDO sector between 1993 and 2003, according to a report from Moody's Investors Service.

Headhunters are reporting a lackluster February, and some sources attribute this to a scarcity of new job openings in the ABS market.