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To: TobagoJack who wrote (97460)	4/23/2001 9:58:22 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 436258

somehow when the sun finally did set we knew the rest of the story now for the latest from the Empire of Debt America will give it's last dime to anyone who asks Hello Izsusu and welcome to the American debt market!! NEW YORK, April 23 (Reuters) - Isuzu Motors Ltd. <7202.T>, Japan's largest producer of light trucks, planned to debut a $440 million offering in the U.S. asset-backed securities (ABS) market this week. Isuzu steered its first asset-backed offering into a light session when no new deal was priced and secondary trade was scant. ABS spreads were flat from Friday, market sources said. The Isuzu transaction will likely garner healthy demand, given Izuzu's affiliation with General Motors Corp. <GM.N> and a financial guarantee from bond insurer MBIA. "It looks attractive. It's decent collateral," said Frank Germack, fund manager at ABN AMRO Asset Management, who runs $1 billion in bonds. U.S. automaker GM has a 49 percent stake in Isuzu. The fixed-rate offering will be supported by retail sales of sports utility vehicles, according to market sources. The Isuzu asset-backed deal will be led by First Union Securities and feature five classes of fixed-rate notes, with average lives ranging from 0.36 to 3.46 years, syndicate sources said. Yield spreads on the Isuzu paper, in early price talk, were slightly wider than those for Ford Motor Co. <F.N> and GM itself, premier issuers in the U.S. car loan asset-backed sector, market sources said. In addition to Isuzu deal, consumer finance company Capital One Financial Corp. <COF.N> aimed to roll out a $1 billion credit card deal, to be led by Deutsche Bank, syndicate sources said on Monday. Drive Financial Services L.P., a subprime car loan lender and servicer, continued to market a $250 million securitization to 144a investors. Navistar International <NAV.N>, a leading maker of trucks and school buses, was shopping its $400 million equipment transaction. While the above offerings have fetched investor interests, Conseco Inc. <CNC.N> finance unit's $650 million multi-part home equity deal may have to be restructured, market sources said. RATE CUT SEEN BOOSTING ABS The Federal Reserve's surprise interest rate cut last week may energize a slow ABS market, as cheaper borrowing costs often spur new loan production and in turn, the fresh loans are repackaged into securities, investors said. "A lot of the paper is backed by consumers. A rate cut could reduce their debt burden," Germack said. "New (ABS) issues will be originated and keep the market liquid." Last Wednesday, the U.S. central bank lowered interest rates by half a percentage point, the fourth time in 2001. The asset-backed sector rallied with other spread products last week, but trailed corporate bonds and mortgage-backed securities (MBS) which offered higher yields, analysts said. "We are bullish on asset-backeds as a defensive sector," Germack said. Trades in other fixed-income sectors including U.S. Treasuries have choppy, as a result of the volatility in the equity market. As far as supply, month-to-date volume has totaled $8.2 billion, compared with April's total of $14.2 billion, according to Banc of America Securities. Year-to-date, ABS issuance of $72 billion outpaced $61 billion over the same period a year earlier. Analysts cautioned that ABS interests may wane if stocks sustain last week's rally. "We should see spreads on ABS under pressure (if stocks continue to rally) as accounts look to 'asset-allocate' into cheaper sectors in fixed income and equities," said Deutsche Banc Alex Brown analysts in an April 20 report. U.S. stocks fell after Wall Street soured on high-tech bellwethers Intel Corp. <INTC.O> and Oracle Corp. <ORCL.O>. The Dow Jones industrial average <.DJI> fell 48 points at 10,532, and the Nasdaq composite <.IXIC> shed 4.8 percent at 2,059. REUTERS Rtr 19:12 04-23-01