ABS market participants will ultimately benefit from AmeriCredit Corp.'s efforts to cut costs and maintain adequate capital, although it may be painful in the process.

On Feb. 12, AmeriCredit announced, among other things, that it will reduce loan origination volume to $750 million per quarter by June. The company readjusted its earnings to reflect an additional $17 million in write-downs over previous estimates in the value of its residuals, due to the delay in cash received as a result of required spread account deposits in its Financial Security Insurance policy.

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