CDOs/CLOs

After a two and a half year hiatus, Structured Finance Advisors is plotting a return to the primary CDO market. The Farmington, Conn.-based asset manager is currently talking to underwriters about returning with a static-pool high-grade structured finance-backed CDO, its first new-issue offering since June 2002.

The primary U.S. ABS market appeared to be holding its breath along with the rest of the nation for the early part of last week, waiting on tenterhooks for the results of the presidential election to come in well into Wednesday afternoon. However, the market quickened later in the week to price roughly $7 billion as of Thursday's market close. The prior week saw upwards of $8 billion in new issues come to market.

Customers First Inc. has come a long way since its inception as a business outsourcing company last September, with a wide variety of today's clients spread across the hedge fund community as well as the asset-backed and mortgage-backed markets.

Amid the political frenzy that seized the nation and culminated on election day last week, some investors expressed concern over what impact a Republican-led initiative to halt the creation of student loans with 9.5% floor payments would have on outstanding student loan ABS. However, investors' fears are unwarranted, according to a recent report from Morgan Stanley.

NEW YORK - Packed with nearly 700 registrants the day before the presidential election, the process of politics was replicated at Standard & Poor's Annual Global CDO Conference held here last week. An audience participation panel provided an indication of what the CDO market could expect in 2005 and created a clearer picture of participants flocking to this growing market space.

A new issuer in the franchise sector is expected to enter the term ABS market possibly before year end, market sources said.

Some ABS new asset classes appear to be stalled at the moment, according to an unscientific poll conducted by ASR staff following Standard and Poor's fourth annual New Assets Hot Topics Conference held in New York last week.

Year to date as of 11/10 Term (days) 11/04 11/05 11/08 11/09 11/10 1-week

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues JP Morgan 9,168.4 1 15.8 18 Citigroup 8,238.7 2 14.2 13 Deutsche Bank AG 6,828.5 3 11.8 12 Banc of America Securities LLC 6,552.7 4 11.3 12 Wachovia Corp 6,459.3 5 11.1 12 Credit Suisse First Boston 4,943.7 6 8.5 10 Morgan Stanley 3,703.3 7 6.4 8 Barclays Capital 3,524.5 8 6.1 9 Merrill Lynch & Co Inc 2,426.9 9 4.2 4 Lehman Brothers 1,255.7 10 2.2 3 Industry Total 57,963.1 - 100.0 69 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 11,248.9 1 17.2 25 Morgan Stanley 6,696.4 2 10.2 19 Citigroup 5,913.9 3 9.1 22 Credit Suisse First Boston 4,865.1 4 7.4 12 Wachovia Corp 4,739.4 5 7.3 18 UBS 4,605.1 6 7.0 8 Deutsche Bank AG 4,429.6 7 6.8 11 Goldman Sachs & Co 4,297.5 8 6.6 8 Lehman Brothers 3,343.0 9 5.1 11 Bear Stearns & Co Inc 3,340.1 10 5.1 14 Industry Total 65,373.8 - 100.0 182 Source: Thomson Financial