Despite a surprisingly high proportion of U-Haul exposure in some high profile CMBS transactions outstanding, Salomon Smith Barney researchers see only headline risk in the triple-A classes of deals backed by loans made to falling angel parent, AMERCO, in the event that it files for Chapter 11 bankruptcy protection. In fact, Salomon views any widening in triple-As as a buying opportunity in any of the 10 trades with loans to AMERCO units U-Haul and SAC Holdings.

The reason for this belief is that the U-HAUL fleet, which makes up 76% of AMERCO revenues, is "unencumbered, and thus, there is likely value in the corporate entity," notes researcher Darrell Wheeler. Although AMERCO was unable to restructure its debt outstanding with a $275 million unsecured bond offering it has no availability on a $205 million credit facility, Wheeler sees the event of a bankruptcy as unlikely, at least in the near term.

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