ABS

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Lehman Brothers 45,141.4 1 11.5 83 Bear Stearns & Co Inc 36,779.6 2 9.4 79 Royal Bank of Scotland Group 33,836.8 3 8.6 56 Countrywide Securities Corp 32,034.0 4 8.2 39 Morgan Stanley 31,933.7 5 8.1 41 Credit Suisse First Boston 29,143.9 6 7.4 63 Deutsche Bank AG 28,399.1 7 7.2 53 Citigroup 21,633.4 8 5.5 45 Banc of America Securities LLC 20,787.4 9 5.3 45 Merrill Lynch & Co Inc 20,381.9 10 5.2 30 Industry Total 393,203.7 - 100.0 765 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Citigroup 8,572.0 1 23.0 11 Banc of America Securities LLC 4,689.0 2 12.6 7 Morgan Stanley 3,883.6 3 10.4 4 Deutsche Bank AG 3,826.2 4 10.3 6 Credit Suisse First Boston 3,367.9 5 9.0 5 Merrill Lynch & Co Inc 2,965.8 6 8.0 3 UBS 2,527.7 7 6.8 5 Lehman Brothers 2,138.5 8 5.7 2 Goldman Sachs & Co 2,127.2 9 5.7 4 JP Morgan 1,808.5 10 4.8 4 Industry Total 37,327.3 - 100.0 30 Source: Thomson Financial

auto ABS 17% credit card ABS 8% global MBS 4% real estate ABS 58% student loan ABS 9% other 4%

HSBC Finance Corp.'s acquisition of once-harrowed credit card issuer The Metris Companies, makes Metris the latest in a long line of consolidation moves in the credit card sector. The consolidation streak has become so hot in recent months that further consolidation has become more of a question of when,' rather than if.' "This was kind of anticipated," said an ABS strategist.

CLOs remain a hot commodity in Europe, as both veteran and first-time managers have launched or are gearing up new vehicles for this year. This is in large part due to the positive credit risk profile and strong availability of leveraged loans in the European market. Also, the reasonably stable spreads offered by CLOs are attractive to fund managers, notes a recent report by Standard & Poor's.

Providian Financial Corp. launched four deals from its new de-linked credit card ABS trust last week, the first since Washington Mutual Inc. announced it would take over the company and its $18 billion credit card portfolio. All four single tranche were upsized and priced in-line with guidance.

Moody's Investors Service last week unveiled one in a series of CDO research and monitoring tools it plans to roll out this year. The tool - called Performance Data Services for CDOs - is an internet-based platform designed for investors to conduct trend and performance analysis on both individual CDOs and pools, according to the rating agency.

The U.S. ABS primary market hit the first week of August like a wall, generating only $7 billion in new issue supply. The market had been cruising along at a pace in the $13 to $14 billion range for most of July, but the summer doldrums just kicked in.

In the wake of credit enhancement reductions to one of Chase Manhattan Bank, N.A.'s credit card trusts, analysts with Citigroup Global Markets are predicting other credit card issuers are likely to seek similar reductions soon. "Given that one issuer has had its credit enhancement reduced, others are likely to pursue a request for credit enhancement reduction," said Citigroup analyst Mary Kane.

ABS investors can expect even more home-equity ABS supply from New Century Financial Corp. in the second half of this year. The Irvine, Calif.-based subprime lender announced last week during its second quarter earnings call that it may add as much as $6 billion to its REIT portfolio - a $4 billion increase over previous estimates - in order to meet its $7.33 dividend target next year. New Century added that it has enough cash to complete between $2 billion and $6 billion of securitizations.

Using a sample of 14 mezzanine structured finance CDOs issued between the second half of last year and the first quarter of this year, Merrill Lynch found the investment vehicles generally carried lower risk residential mortgage collateral when benchmarked against the home equity ABS sector.

Year to date as of 08/04 Term (days) 07/29 08/01 08/02 08/03 08/04 1-week

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues JP Morgan 7,759.0 1 14.0 13 Merrill Lynch & Co Inc 7,246.0 2 13.1 9 Citigroup 6,952.2 3 12.6 12 Deutsche Bank AG 6,264.8 4 11.3 12 Banc of America Securities LLC 5,684.6 5 10.3 9 Credit Suisse First Boston 4,561.9 6 8.3 9 Barclays Capital 4,302.5 7 7.8 8 Wachovia Corp 3,712.5 8 6.7 8 Goldman Sachs & Co 2,293.6 9 4.2 3 HSBC Holdings PLC 2,063.0 10 3.7 4 Industry Total 55,263.9 - 100.0 54 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Merrill Lynch & Co Inc 16,181.8 1 21.0 23 Citigroup 10,853.2 2 14.1 22 Wachovia Corp 6,669.9 3 8.7 13 Lehman Brothers 4,715.7 4 6.1 15 Morgan Stanley 4,714.8 5 6.1 21 UBS 4,003.1 6 5.2 10 Bear Stearns & Co Inc 3,878.5 7 5.0 11 Credit Suisse First Boston 3,293.0 8 4.3 8 Deutsche Bank AG 3,121.1 9 4.1 11 Goldman Sachs & Co 3,107.0 10 4.0 4 Industry Total 77,069.0 - 100.0 185 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues JP Morgan 6,708.1 1 25.1 15 Citigroup 4,398.7 2 16.4 14 Barclays Capital 2,999.0 3 11.2 11 Banc of America Securities LLC 2,241.2 4 8.4 9 Morgan Stanley 2,216.5 5 8.3 4 Credit Suisse First Boston 2,038.2 6 7.6 7 Deutsche Bank AG 2,022.3 7 7.6 12 ABN AMRO 1,833.2 8 6.9 7 Merrill Lynch & Co Inc 624.7 9 2.3 4 Lehman Brothers 500.0 10 1.9 2 Industry Total 26,757.0 - 100.0 56 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Deutsche Bank AG 1,668.6 1 15.5 3 Barclays Capital 1,492.5 2 13.8 2 Credit Suisse First Boston 1,243.6 3 11.5 2 ABN AMRO 1,243.6 3 11.5 2 Morgan Stanley 1,191.7 5 11.0 2 Banc of America Securities LLC 750.0 6 6.9 1 Lehman Brothers 725.8 7 6.7 1 JP Morgan 725.8 7 6.7 1 HSBC Holdings PLC 566.7 9 5.3 1 Merrill Lynch & Co Inc 375.0 10 3.5 1 Societe Generale 375.0 10 3.5 1 Industry Total 10,800.2 - 100.0 9 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Lehman Brothers 45,141.4 1 11.7 83 Bear Stearns & Co Inc 36,779.6 2 9.5 79 Royal Bank of Scotland Group 33,836.8 3 8.8 56 Countrywide Securities Corp 31,333.8 4 8.1 38 Morgan Stanley 30,308.7 5 7.9 39 Deutsche Bank AG 27,925.0 6 7.2 52 Credit Suisse First Boston 26,967.8 7 7.0 59 Citigroup 22,026.5 8 5.7 43 Banc of America Securities LLC 20,591.4 9 5.3 43 Merrill Lynch & Co Inc 19,065.9 10 4.9 28 Industry Total 385,812.8 - 100.0 751 Source: Thomson Financial

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Citigroup 8,572.0 1 24.0 11 Banc of America Securities LLC 3,904.9 2 10.9 6 Morgan Stanley 3,883.6 3 10.9 4 Credit Suisse First Boston 3,367.9 4 9.4 5 Deutsche Bank AG 3,042.0 5 8.5 5 Merrill Lynch & Co Inc 2,965.8 6 8.3 3 UBS 2,527.7 7 7.1 5 Lehman Brothers 2,138.5 8 6.0 2 Goldman Sachs & Co 2,127.2 9 6.0 4 JP Morgan 1,808.5 10 5.1 4 Industry Total 35,759.0 - 100.0 29 Source: Thomson Financial

auto ABS 18% credit card ABS 7% global MBS 4% real estate ABS 58% student loan ABS 9% other 4%

General Motors Acceptance Corp. may be issuing a lot less ABS than expected this year, and possibly for the next five, as Bank of America Corp. last week agreed to buy $55 billion worth of retail auto loans from GMAC over the next five years. Not only will the deal reduce the amount of loans GMAC has available to securitize, but sources also believe BofA is not likely to securitize any of those loans via its new Bank of America Securities Auto Trust.