For the first time in roughly one year, AmeriCredit Corp. offered auto loan ABS backed by a full guaranty from Financial Security Assurance (FSA). In somewhat of a surprise, FSA changed its policy on cross-collateralization across all transactions, a policy that had many believing AmeriCredit would simply wait out the life of its outstanding FSA-wrapped deals.

AmeriCredit hit the ABS primary market last week with a $915 million 2003-C-F auto loan securitization, via Deutsche Bank Securities, the proceeds for which will be used to pay down the $1 billion auto loan warehousing facility AmeriCredit set up via DBSI in March (see ASR 3/24/03). In order to do business again with the non-prime auto lender, which has seemingly found its way back into the market's favor, FSA limited the cross-collateralization of excess interest to a transaction-specific basis, versus the trust-wide cross-collateralization standard within FSA's surety agreements.

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