Spread compression in the first quarter took a slight toll on surety business in the primary ABS market, lowering total wrapped proceeds to about $11 billion from $11.7 billion in the fourth quarter, despite a near 20% uptick in overall ABS issuance. For a list of deals, see ASR's First Quarter Guarantor supplement.

Monoline penetration, or wrapped proceeds over total proceeds, was at 6.62% for 1Q04, based on U.S. public and Rule 144A non-CDO issuance, down from 8.3% in the fourth quarter. During the first quarter of 2003, the sureties wrapped about 10% of the market.

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