As its stock price hovers below the price of a cup of coffee at Starbucks, AmeriCredit Corp. is on the road with its first auto-loan securitization of the year, sources said. Amid many questions centered on the troubled lender's viability, the issuer has reportedly secured a surety from a monoline it has yet to do business with, insulating investors from headline risk, as well as further diversifying its monoline exposure.

This deal comes on the heels of unilateral support from the bank research community during the recent ABS conferences held in Arizona, where an entire panel agreed that - given monoline backing - AmeriCredit could successfully price a deal. Recent headlines have most ABS investors expecting spreads to come cheap for AMCAR 2003-A even though demand for auto-loan transactions is currently strong due to a lack of supply in the first month-and-a-half of 2003.

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