CDOs/CLOs

Intellectual property specialty firm UCC Capital Corp. began marketing three whole business securitizations this week, each in the $30 million to $65 million range, and all sporting investment grade ratings, sources said.

The tobacco bond market took a series of hits last week, marked by a multi-notch industry downgrade from Fitch Ratings, which, on the corporate side, took R.J. Reynolds below investment grade. On the ABS front, Fitch further downgraded the entire sector, affecting approximately $18 billion in bonds.

The settlement of Visa and MasterCard with retailers - amounting to $3 billion over the next ten years - will not impact credit card ABS, as "The industry's credit card practices were never targeted by the lawsuit," noted Banc One Capital Markets researcher Alessandro Pagani in an industry comment.

The CDO issuance lag earlier this year seems to have gone the way of winter, with a number of deals pricing last week and several more entering the pipeline - but it's still a market largely dominated by RMBS volumes. According to market figures, the near-term pipeline is at $25.8 billion equivalent.

Year to date as of May 7 Term (days) 05/01 05/02 05/05 05/06 05/07 1-week

2003 2002 2001 ABS (Public and 144A) 180,222 139,714 125,556 ABS (Public and 144A excluding CDOs) 167,044 125,870 106,701 ABS (Public Only) 149,163 113,775 91,661 ABS (144A Only) 31,058 25,939 33,895 Non-Agency MBS 108,158 69,946 52,184 Agency MBS 221,652 168,284 75,199 CMBS 21,486 16,364 18,191 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 3,424.4 1 18.6 4 Credit Suisse First Boston 2,790.1 2 15.2 6 Deutsche Bank AG 2,234.8 3 12.2 4 BANK ONE Corp 2,112.3 4 11.5 4 JP Morgan 1,844.4 5 10.0 3 Morgan Stanley 1,781.2 6 9.7 3 Goldman Sachs & Co 1,289.4 7 7.0 3 Banc of America Securities LLC 841.5 8 4.6 2 Wachovia Corp 833.9 9 4.5 3 Merrill Lynch & Co Inc 419.3 10 2.3 1 Barclays Capital 406.0 11 2.2 1 Royal Bank of Scotland Group 287.5 12 1.6 2 Westdeutsche Landesbank Giro 120.2 13 0.7 1 Industry Total 18,384.8 - 100.0 23 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 Goldman Sachs & Co 2,998.1 1 22.8 1 Credit Suisse First Boston 1,650.9 2 12.5 5 Deutsche Bank AG 1,461.5 3 11.1 3 Morgan Stanley 1,378.4 4 10.5 3 Bear Stearns & Co Inc 1,270.7 5 9.6 5 Citigroup 1,047.6 6 8.0 3 Wachovia Corp 950.0 7 7.2 2 Westdeutsche Landesbank Giro 545.0 8 4.1 1 Lehman Brothers 368.4 9 2.8 3 JP Morgan 347.6 10 2.6 1 Merrill Lynch & Co Inc 300.8 11 2.3 1 Royal Bank of Scotland Group 283.9 12 2.2 1 UBS Warburg 200.0 13 1.5 1 Banc of America Securities LLC 197.8 14 1.5 1 Jefferies & Co Inc 161.4 15 1.2 1 First Republic Bank Corp 16.0 16 0.1 1 Industry Total 13,178.0 - 100.0 31 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 7,247.2 1 25.4 10 BANK ONE Corp 4,851.9 2 17.0 8 JP Morgan 4,429.8 3 15.5 8 Morgan Stanley 3,579.5 4 12.5 4 Barclays Capital 2,834.7 5 9.9 6 Banc of America Securities LLC 2,000.6 6 7.0 6 Deutsche Bank AG 1,507.6 7 5.3 4 Credit Suisse First Boston 969.3 8 3.4 3 Merrill Lynch & Co Inc 462.5 9 1.6 2 Wachovia Corp 461.3 10 1.6 2 Lehman Brothers 200.0 11 0.7 1 Industry Total 28,544.2 - 100.0 43 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 Deutsche Bank AG 1,375.2 1 42.3 5 JP Morgan 875.2 2 26.9 4 Citigroup 500.0 3* 15.4 1 BANK ONE Corp 500.0 3* 15.4 1 Industry Total 3,250.3 - 100.0 5 Source: Thomson Financial