In light of the rapid evolution of the European investment community over the last two years, overseas investors - especially new entrants into the ABS market - have faced the formidable challenge of needing to self-educate and bring themselves up to speed regarding the nuances of the often-confusing securitization markets.

As the ABS market continues to grow so strongly outside of the U.S., nowhere is that learning curve required to be steeper than for the lesson that needs to be learned regarding the role of monoline credit enhancement. With more and more European money coming out of the woodwork, as well as factors including the introduction of the Euro and investors' willingness to put money towards instruments other than plain-vanilla government bonds, a familiarity with the benefits of owning monoline-wrapped paper has recently become priority No. 1 for both investors and the monoline insurers themselves.

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