Securitization

BOCA RATON, FLA. - Despite the negative headlines surrounding the commercial airline industry, the pooled aircraft lease ABS sector is heating up, as evidenced by the pricing of recent transactions as well as one transaction scheduled for later this year. In anticipation of the pending supply, fresh money is coming into the sector from hedge funds and private equity, even though rising fuel costs and labor difficulties threaten to send more commercial airline carriers into bankruptcy.

BOCA RATON, FLA. - A crack team of leading ABS research analysts gathered last week at Information Management Network's ABS East conference to discuss the picture in the auto, credit card and student loan sectors. Consistent with the themes that ran throughout the conference, interest rates, employment, fuel prices and home price appreciation were seen as the key drivers of ABS performance.

BOCA RATON, FLA. - Those that take the view that there is a bubble in the U.S. housing market - within pockets therein or otherwise - have one burning question: will the fall be hard or soft? Most answer with the safe question, that there will likely be a little of both. But, in any case, experts agree it is likely to be painful.

BOCA RATON, FLA. - CDO equity investors are asking for larger chunks than ever before, Banc of America Securities Managing Director Dik Blewitt said during a panel discussion at this year's Information Management Network ABS East conference held here last week.

Year to date as of 09/15 Term (days) 09/09 09/12 09/13 09/14 09/15 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 8,270.8 1 13.2 13 Deutsche Bank AG 7,263.3 2 11.6 13 Merrill Lynch & Co Inc 7,246.0 3 11.6 9 Citigroup 6,870.1 4 11.0 12 Banc of America Securities LLC 5,947.1 5 9.5 10 Wachovia Corp 5,005.3 6 8.0 11 Barclays Capital 4,782.8 7 7.6 9 Credit Suisse First Boston 4,561.9 8 7.3 9 Goldman Sachs & Co 3,564.1 9 5.7 4 HSBC Holdings PLC 2,771.4 10 4.4 4 Industry Total 62,639.2 - 100.0 61 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 16,256.7 1 17.9 24 Citigroup 11,695.8 2 12.9 25 Morgan Stanley 7,534.7 3 8.3 28 Wachovia Corp 6,951.2 4 7.7 15 Bear Stearns & Co Inc 6,821.5 5 7.5 17 Deutsche Bank AG 5,279.6 6 5.8 14 Lehman Brothers 5,147.7 7 5.7 16 UBS 4,453.1 8 4.9 11 Banc of America Securities LLC 3,996.2 9 4.4 19 JP Morgan 3,659.6 10 4.0 10 Industry Total 90,876.6 - 100.0 218 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 10,569.1 1 29.3 21 Citigroup 5,198.2 2 14.4 16 Barclays Capital 4,249.0 3 11.8 11 Deutsche Bank AG 3,324.6 4 9.2 15 Morgan Stanley 2,216.5 5 6.2 4 Credit Suisse First Boston 2,088.2 6 5.8 8 Banc of America Securities LLC 2,041.2 7 5.7 8 ABN AMRO 1,833.2 8 5.1 7 Royal Bank of Scotland Group 1,135.8 9 3.2 4 Merrill Lynch & Co Inc 759.8 10 2.1 5 Industry Total 36,040.6 - 100.0 72 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 2,400.7 1 18.3 4 Morgan Stanley 2,041.7 2 15.6 3 Barclays Capital 1,492.5 3 11.4 2 Credit Suisse First Boston 1,243.6 4 9.5 2 ABN AMRO 1,243.6 4 9.5 2 Citigroup 944.1 6 7.2 2 Banc of America Securities LLC 750.0 7 5.7 1 Lehman Brothers 725.8 8 5.5 1 JP Morgan 725.8 8 5.5 1 HSBC Holdings PLC 566.7 10 4.3 1 Industry Total 13,114.5 - 100.0 11 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 49,990.9 1 10.9 91 Bear Stearns & Co Inc 41,978.1 2 9.2 93 Credit Suisse First Boston 38,566.9 3 8.4 81 Royal Bank of Scotland Group 38,429.0 4 8.4 63 Countrywide Securities Corp 37,376.5 5 8.2 45 Morgan Stanley 36,226.6 6 7.9 46 Deutsche Bank AG 32,995.6 7 7.2 64 Citigroup 28,283.7 8 6.2 56 Banc of America Securities LLC 24,082.0 9 5.3 52 Merrill Lynch & Co Inc 23,183.8 10 5.1 35 Industry Total 458,374.5 - 100.0 861 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 8,972.0 1 22.2 12 Deutsche Bank AG 5,121.9 2 12.7 7 Banc of America Securities LLC 4,831.0 3 11.9 8 Merrill Lynch & Co Inc 4,261.6 4 10.5 4 Morgan Stanley 3,883.6 5 9.6 4 Credit Suisse First Boston 3,367.9 6 8.3 5 UBS 2,527.7 7 6.3 5 Lehman Brothers 2,138.5 8 5.3 2 Goldman Sachs & Co 2,127.2 9 5.3 4 JP Morgan 1,808.5 10 4.5 4 Industry Total 40,460.7 - 100.0 33 Source: Thomson Financial

auto ABS 17% credit card ABS 8% global MBS 4% real estate ABS 59% student loan ABS 9% other 4%

Information Management Network's 11th annual ABS East conference kicks off this week, nearly one month earlier than usual, and is expected to be even bigger than last year with over 2,800 delegates and 128 sponsors were registered to participate as of last week. ABS players from around the country will be treated to four days worth of panel discussions and entertainment at the world-class Boca Raton Resort and Club in Boca Raton, Fla.

In spite of the shortened holiday week, the ABS primary market managed to generate $17 billion as issuers and managers rushed to get deals done before the upcoming ABS East conference in Boca Raton, Fla.

In the wake of the devastation wrought by Hurricane Katrina, the question on most people's minds in the ABS market is how deals in some of the non-mortgage related ABS sectors will respond, and how badly the damage will affect deals in those sectors. Luckily, unlike in the Gulf coast region itself, it appears as if the ABS market will weather the storm.

As talk of the housing bubble bursting looms and affordability mortgage products proliferate, ASR chatted with Accredited Home Lenders Inc. Chairman and CEO Jim Konrath to discuss his company's future prospects.

Year to date as of 09/08 Term (days) 09/02 09/05 09/06 09/07 09/08 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 8,270.8 1 13.6 13 Merrill Lynch & Co Inc 7,246.0 2 11.9 9 Citigroup 6,870.1 3 11.3 12 Deutsche Bank AG 6,594.6 4 10.9 12 Banc of America Securities LLC 5,684.6 5 9.4 9 Barclays Capital 4,782.8 6 7.9 9 Wachovia Corp 4,742.9 7 7.8 10 Credit Suisse First Boston 4,561.9 8 7.5 9 Goldman Sachs & Co 3,564.1 9 5.9 4 HSBC Holdings PLC 2,771.4 10 4.6 4 Industry Total 60,776.8 - 100.0 59 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 10,569.1 1 31.2 21 Citigroup 4,698.3 2 13.9 15 Deutsche Bank AG 3,274.6 3 9.7 14 Barclays Capital 2,799.0 4 8.3 10 Morgan Stanley 2,216.5 5 6.6 4 Banc of America Securities LLC 2,041.2 6 6.0 8 Credit Suisse First Boston 2,038.2 7 6.0 7 ABN AMRO 1,833.2 8 5.4 7 Royal Bank of Scotland Group 1,135.8 9 3.4 4 Merrill Lynch & Co Inc 759.8 10 2.3 5 Industry Total 33,840.7 - 100.0 68 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 16,256.7 1 18.3 24 Citigroup 11,695.8 2 13.2 25 Morgan Stanley 7,184.7 3 8.1 27 Wachovia Corp 6,951.2 4 7.8 15 Bear Stearns & Co Inc 5,730.8 5 6.5 15 Deutsche Bank AG 5,279.6 6 6.0 14 Lehman Brothers 5,147.7 7 5.8 16 UBS 4,453.1 8 5.0 11 Banc of America Securities LLC 3,996.2 9 4.5 19 Credit Suisse First Boston 3,654.0 10 4.1 9 Industry Total 88,640.0 - 100.0 214 Source: Thomson Financial