For the second time this year, an outstanding ABS transaction has triggered an early amortization. While news broke earlier this month that a Conseco Finance private label credit card transaction was triggered by the bankruptcy of the seller/servicer, few predicted the dealer floorplan ABS from Mitsubishi Motor Credit would pay down early as well.

Triggered by a sharp decline in the payment rate in December, rather than the credit event that triggered CPLMT 2001-A, MMCA Wholesale Master Owner Trust 2001-1 is paying down early due to an increase in inventories last year that sent the three-month payment rate below 27.5%. Mitsubishi dealer inventories peaked at 72,750 units in December, versus an average in the mid-50,000 unit area on a historical basis, sources said.

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