Last week a number of articles emerged in the press addressing write-downs that companies and investors are facing for exposure to airline enhanced equipment trust certificates (EETCs), following the failure of several major airlines, including UAL Corp.

While EETCs are not securitizations, the losses and downgrades are showing up in CBOs, a strong provider of liquidity for EETCs over the last few years. Deals that have suffered from exposure to aircraft industry include series I and II of Diversified Asset Securitization Holdings (DASH), CAB I from Structured Finance Advisors and Mid-Ocean CBO 2000-1 from Deerfield Capital Management.

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