CDOs

Rev Cred/Home Eq 48% Non-Jumbo Mtg Ln 15% Auto Loans/Recs 9% Student Loans 7% Credit Card Rec 6% Other 15%

Richmond, Va.-based electronics retailer Circuit City Stores announced last week it would close 19 of its 636 stores, just as hedge-fund Highland Capital Management made a $3.25 billion bid for the company. Though an imminent takeover may not by itself mean bad things for the company's ABS, sources say more closings could impact the performance of the company's master trust.

The aircraft ABS sector appears ripe for new issue, according to some, however others question the wisdom of buying it.

Deloitte & Touche is developing a web-based product to help issuers comply with disclosure requirements in the Securities and Exchange Commission's freshly minted rule on asset-backed securities, Regulation AB. Mark Scherer, a principal in Deloitte's technology and consulting group, said the application, allowing issuers to input vintage and deal information in a format compliant with Reg AB, should be available within the next two months. The application will also satisfy Reg AB's requirement that the information be posted on a Web site.

NEW YORK - Deutsche Bank Securities' ABS research team is predicting 4% overall growth in the sector over last year, with slowed issuance in mortgage related ABS, as interest rates creep up and home price appreciation slows.

In its quarterly report on U.S. bond issuance released last week, the Bond Market Association reported that total bond issuance reached $5.48 trillion in 2004 versus $6.81 trillion in 2003. The major contributor to the decline was the drop in MBS issuance, which was impacted by the FOMC's embarking on its program to increase rates in a "measured" manner. Not factoring in MBS, bond issuance was down less than 1% in 2004 from the previous year.

ABS West conference attendees evidently made the most of their time in Arizona, with the U.S. ABS primary market on track to price over $18 billion in new issuance for the week as of last Thursday. Despite the deluge of supply, spreads held firm across sectors.

As it prepares to move into its new New York midtown digs, Cantor Fitzgerald LP is in the midst of a massive hiring spree to greatly expand the firm's debt capital markets division. Cantor announced the addition of 15 staffers earlier this month and is looking to hire 150 over the next year.

Year to date as of 02/17 Term (days) 02/11 02/14 02/15 02/16 02/17 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 2,283.9 1 19.0 3 Deutsche Bank AG 2,027.7 2 16.9 3 Merrill Lynch & Co Inc 1,642.8 3 13.7 2 JP Morgan 1,545.0 4 12.9 3 Goldman Sachs & Co 1,259.0 5 10.5 1 Citigroup 1,232.1 6 10.3 2 Barclays Capital 1,154.4 7 9.6 2 Wachovia Corp 850.0 8 7.1 2 Industry Total 11,994.8 - 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 Morgan Stanley 807.9 1 33.8 2 JP Morgan 685.0 2 28.7 1 Merrill Lynch & Co Inc 497.5 3 20.8 1 Wachovia Corp 300.0 4 12.6 1 Lehman Brothers 98.0 5 4.1 1 Industry Total 2,388.4 - 100.0 6 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 96.8 1 Deutsche Bank AG 17.6 2 1.1 1 Barclays Capital 17.6 2 1.1 1 Banc of America Securities LLC 17.6 2 1.1 1 Industry Total 1,631.8 - 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 Deutsche Bank AG 8,554.6 1 13.7 12 Royal Bank of Scotland Group 6,561.8 2 10.5 11 Morgan Stanley 6,254.3 3 10.0 10 Credit Suisse First Boston 5,896.1 4 9.5 11 Merrill Lynch & Co Inc 5,093.7 5 8.2 6 Lehman Brothers 4,542.6 6 7.3 13 Citigroup 4,500.8 7 7.2 9 Countrywide Securities Corp 4,078.3 8 6.5 4 Bear Stearns & Co Inc 3,637.0 9 5.8 9 Goldman Sachs & Co 2,878.1 10 4.6 4 Industry Total 62,354.6 - 100.0 87 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 - - - - - Industry Total - - - - 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 1,980.0 1 23.4 3 UBS 1,583.3 2 18.7 3 Morgan Stanley 1,540.6 3 18.2 1 Credit Suisse First Boston 1,012.4 4 12.0 1 Lehman Brothers 1,012.4 4 12.0 1 Banc of America Securities LLC 700.0 6 8.3 1 Deutsche Bank AG 303.3 7 3.6 1 JP Morgan 303.3 7 3.6 1 Goldman Sachs & Co 40.0 9 0.5 1 Industry Total 8,475.5 - 100.0 6 Source: Thomson Financial

Year to date as of Feb 16 Coupon Type Market Average Life Buckets Asset Class Volume Pub/144A Fixed Rate Floating Rate Public 144A 0.0 to 0.9 1.0 to 2.9 3.0 to 5.9 6.0 to 7.9 8.0 to 11.0 Aircraft Leases 126 126 126 126 Auto Loans/Recs 41,391 36,622 4,769 35,132 6,259 16,580 18,742 6,069 Comm. Mtg 2,899 1,294 1,605 2,899 1,261 229 829 540 Commercial Loans Corp Bond/Note 3,846 1,696 2,150 3,846 2,569 746 45 485 Corporate Loans 5,352 286 5,066 5,352 2,480 395 370 1,192 914 Credit Card Rec 28,632 10,299 18,333 24,659 3,974 19,334 1,400 5,749 900 1,249 Debentures 2,122 2,122 2,122 2,122 Equip Loans Equip. Leases 4,744 4,469 275 4,164 580 2,293 1,388 554 221 289 Floorplan Recs 8,026 840 7,186 7,902 124 4,014 830 3,182 Franchisee Loans 194 194 194 Home Impr Loans Installment Recs 1,797 1,797 1,797 1,797 Junk Bonds Leveraged Loans 1,174 64 1,110 1,174 38 10 284 842 Mixed Collateral 1,881 7 1,874 1,881 1,500 306 22 53 Mnfrd Housing Ct 200 200 200 200 Motorcycle Loans 2,740 2,740 2,740 313 1,923 504 Mutual Fund Fees 501 331 170 501 501 Non-Jumbo Mtg Ln 68,520 31,864 33,291 65,728 2,793 41,621 14,956 10,760 849 319 Oil Receivables Preferred Sec 3,597 2,268 1,330 3,597 3,253 158 186 Prv Issued Sec 1,852 1,079 380 590 1,262 1,852 Rental Car Rec. 2,400 1,300 1,100 2,400 1,300 1,100 Rev Cred/Home Eq 216,332 125,057 77,504 186,006 30,325 143,388 44,757 25,956 1,606 553 Sm Business Loan 828 828 828 828 Struc Fin Credit 14,838 6,458 8,380 14,838 5,807 2,507 4,928 1,508 Student Loans 30,626 6,957 21,983 25,639 4,986 17,780 3,239 4,044 3,663 1,808 Tax Liens Ticket Rec Timeshare Loans 635 386 250 635 336 300 Tobacco Receives Trade Recs Unspecified/NA Note: Figures are preliminary and subject to change. Data includes U.S. deals and dollar Euro 144As.Source: Thomson Financial

Rev Cred/Home Eq 48% Non-Jumbo Mtg Ln 15% Auto Loans/Recs 9% Student Loans 7% Credit Card Rec 6% Other 15%

PHOENIX - Amid another volume record in 2004, and seemingly endless demand driving spreads to heretofore unseen levels, more than 3,000 delegates and 143 corporate sponsors gathered yesterday for the opening panel discussion of Information Management Network ABS West 2005 conference held here last week, to discuss the next 12 months in securitization markets. While all agreed that the current market conditions were unprecedented and that fundamentals remain positive, many panelists expressed doubt that this environment was sustainable in the long term.

PHOENIX - At least one panel had a healthy discussion at Information Management Network ABS West 2005 conference held here last week, as participants talked the fairness and efficiency of the allocation process for asset-backed securities. The panel consisted of a mix of sell-side syndicate heads - of which there were six - two issuer representatives and an issuer advisor representative. The question of who syndicate desks are really serving, issuers or investors, ran throughout the discussion.

Issuers and investors have flocked to the second lien loan market over the past year-and-a-half, sparking U.S. second lien volume of at least $12 billion in 2004 alone - the most on record. This heightened popularity of the often yieldy debt product has caused arrangers, especially those in the asset-based middle market area - to source collateral for second lien credits in more creative ways than ever before. One particularly creative method is with intellectual property, which is known as a "soft" source of collateral.