CDOs

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues JP Morgan 725.8 1 30.4 1 Barclays Capital 725.8 1 30.4 1 Citigroup 212.0 4 8.9 1 Industry Total 2,389.5 - 100.0 2 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 Countrywide Securities Corp 18,051.7 2 11.4 18 Morgan Stanley 15,552.7 3 9.8 17 Lehman Brothers 14,916.3 4 9.4 36 Royal Bank of Scotland Group 14,162.0 5 8.9 23 Deutsche Bank AG 12,991.2 6 8.2 25 Credit Suisse First Boston 12,760.9 7 8.0 30 Merrill Lynch & Co Inc 8,743.8 8 5.5 10 Goldman Sachs & Co 7,070.5 9 4.5 12 Citigroup 6,372.2 10 4.0 16 Industry Total 159,019.4 - 100.0 237 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 2,230.0 2 17.2 4 Credit Suisse First Boston 1,645.9 3 12.7 2 Morgan Stanley 1,540.6 4 11.9 1 UBS 1,447.2 5 11.2 3 Lehman Brothers 1,012.4 6 7.8 1 Deutsche Bank AG 817.2 7 6.3 2 Goldman Sachs & Co 806.2 8 6.2 2 JP Morgan 317.2 9 2.5 1 Industry Total 12,950.9 - 100.0 11 Source: Thomson Financial

auto ABS 19% credit card ABS 4% global MBS 6% real estate ABS 61% student loan ABS 8% other 3%

Lehman Brothers, which finished as the third-leading underwriter last year, is the leading U.S. ABS underwriter through the first quarter of 2005, according to data maintained by Thomson Financial. With $23.3 billion of domestic ABS supply sold through March 31, Lehman has a slight $1.7 billion lead over its closest rival as the 2005 race comes out of the gate. Lehman controls roughly 10.3% of the U.S. market, according to Thomson. Over the same period last year, Lehman was the second-leading underwriter, with $18.7 billion in proceeds sold and a 10% market share.

Merrill Lynch leads the race among CDO underwriters through the first quarter, with nearly $6 billion of product placed, according to data maintained by Thomson Financial. Merrill's hold in the sectors is one of the more dominating in a market where underwriting is generally considered a commoditized product, as it controls 22.4% of the supply.

Countrywide Home Loans Inc., last year's leading U.S. ABS issuer, maintained its pace throughout the first quarter, bringing more than $21 billion of new-issue ABS to the market, according to data maintained by Thomson Financial. The Calabasas, Calif.-based mortgage giant accounted for 9.4% of the primary supply sold throughout the quarter. This outpaces its 1Q04 market-leading production of $17.3 billion.

The U.S. primary ABS market had another sluggish week, pricing just over $4 billion in new issues as of Thursday's deadline, but was anticipating a mammoth auto deal to price last Friday. Real estate ABS accounted for the bulk of issuance with four deals totaling roughly $3 billion. The credit card saw one transaction for the week.

The Public Utility Commission of Texas is moving ahead with its search for an advisor for CenterPoint Energy's pending $1.8 billion stranded electricity cost bond offering, in spite of the fact that the financing order for the deal is under appeal. Early this month, the Commission posted a RFP seeking an advisor for the deal just days after the Texas Attorney General's Office filed to appeal the Commission's financing order giving Houston-based CenterPoint the green light to line up its advisor.

ABS transactions wrapped by bond insurer MBIA saw only mild spread widening in the secondary market last week, according to sources. The Armonk, N.Y.-based bond insurer received a second round of subpoenas last week from the Securities and Exchange Commission and the New York Attorney General's Office regarding a number of topics, including reinsurance contracts and credit default swaps on the company's corporate debt.

ABS analysts are saying Discover Financial Services would likely increase its ABS issuance and become an acquisition target if spun off from parent company Morgan Stanley. The unit, championed by Morgan Stanley CEO Phillip Purcell, has come under fire from shareholders and, more recently, a group of dissident former Morgan Stanley executives has called for Purcell's ouster in paid advertisements.

Software finance company Tideline Capital recently closed a $100 million conduit facility with Wachovia Securities backed exclusively by software receivables.

With the profusion of new CDO managers entering the market, there has been some buzz surrounding the relative inexperience of some managers, and whether or not this will impact the future performance of these deals.

Following the liquidation of 114 corporate-owned Athlete's Foot stores, Moody's Investors Service recently downgraded the shoe retailer's $30 million franchise fee securitization two notches to Baa3' from Ba2'.

Corporation Services Co. entered the securitization services playing field last week, when it launched a new subsidiary, CSC Securitization Services. Richard Taiano is set to head the operations for the team.

Year to date as of 04/07 Term (days) 04/01 04/04 04/05 04/06 04/07 1-week

Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Credit Suisse First Boston 3,449.5 1 16.3 7 Citigroup 3,206.3 2 15.2 5 Barclays Capital 3,195.9 3 15.1 6 Deutsche Bank AG 3,083.7 4 14.6 6 Merrill Lynch & Co Inc 2,502.4 5 11.8 4 Wachovia Corp 1,580.0 6 7.5 3 Goldman Sachs & Co 1,289.0 7 6.1 1 Banc of America Securities LLC 1,244.3 8 5.9 2 JP Morgan 989.9 9 4.7 2 ABN AMRO 479.6 10 2.3 1 Industry Total 21,157.7 - 100.0 20 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 5,670.4 1 21.7 9 Morgan Stanley 3,825.6 2 14.6 13 Citigroup 2,965.7 3 11.3 7 Lehman Brothers 2,639.2 4 10.1 8 UBS 2,632.6 5 10.1 6 Bear Stearns & Co Inc 2,271.2 6 8.7 5 Groupe Caisses d'Epargne 1,742.0 7 6.7 2 Credit Suisse First Boston 889.0 8 3.4 3 Royal Bank of Scotland Group 866.1 9 3.3 2 JP Morgan 685.0 10 2.6 1 Industry Total 26,163.9 - 100.0 64 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 Morgan Stanley 1,579.0 1 27.0 1 JP Morgan 1,400.0 2 23.9 6 Citigroup 1,125.0 3 19.2 3 Barclays Capital 799.1 4 13.7 7 Lehman Brothers 375.0 5 6.4 1 Deutsche Bank AG 199.1 6 3.4 3 Banc of America Securities LLC 199.1 6 3.4 3 Merrill Lynch & Co Inc 174.3 8 3.0 1 Industry Total 5,850.5 - 100.0 14 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 725.8 1 30.4 1 JP Morgan 725.8 1 30.4 1 Barclays Capital 725.8 1 30.4 1 Citigroup 212.0 4 8.9 1 Industry Total 2,389.5 - 100.0 2 Source: Thomson Financial