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To: Knighty Tin who wrote (253793)	8/4/2003 10:43:06 AM
From: ild	Respond to of 436258

Global: Global Fix for Global Problems Stephen Roach (New York) morganstanley.com

To: Knighty Tin who wrote (253793)	8/4/2003 12:47:32 PM
From: ild	Read Replies (2) \| Respond to of 436258

KT, how do they get AAA for this stuff? I guess some MBI/ABK guarantees that junk. What about losses on receivables? I'd guess GMAC will have to eat the losses. GMAC Announces $3 Bln Auto Receivables Securitization DOW JONES NEWSWIRES NEW YORK -- General Motors Acceptance Corp. (GMAC) has begun marketing of a $3 billion securitization of retail auto receivables from its Capital Auto Receivables Asset Trust (CARAT). GMAC is a unit of General Motors Corp. (GM). A syndicate headed by Credit Suisse First Boston, JP Morgan Securities and HSBC has been selected to lead manage the auto finance company's third securitization of 2003. As with its previous offering, GMAC will be offering investors the option of selecting either fixed or floating rate debt in each tranche. Preliminary offeroing details are as folows: Class Amount AvgLife Ratings Price Benchmark A-1 $1.130 bln 1.35 yr AAA/Aaa/AAA SynthLibor/1moLibor A-2 650 mln 2.10 yr AAA/Aaa/AAA Swaps or 1 mo Libor A-3 820 mln 3.00 yr AAA/Aaa/AAA Swaps or 1 mo Libor A-4 256 mln 3.85 yr AAA/Aaa/AAA Swaps or 1 mo Libor B 87 mln 3.84 yr A+/Aa3/AA- Swaps or 1 mo Libor GMAC's last public offering of asset-backed debt took place on June 3 when it publicly sold $2.25 billion of notes with maturities from one-year to 3.3-years. That sale met with very strong investor interest. Syndicate sources had reported that most tranches in that issuance were from two-to three-times oversubscribed. A $755 million money market class was not publicly offered at the June sale. Investors showed a preference for floating rate debt at the June sale, and analysts said that given the volatile movements in credit markets in recent weeks, they would expect investors to continue to show a preference for floating-rate debt in the current offering. Syndicate sources said that they expect price guidance to be announced later Monday. Pricing of the offering is expected to take place Wednesday, they added. Details of the June pricing are as follows: Class Amount AvgLife Ratings Pricing A-2A 230 mln 1.0 yr AAA/Aaa/AAA SynthLibor + 7 bp A-2B 342 mln 1.0 yr AAA/Aaa/AAA 1-mo Libor + 2 bp A-3A 450 mln 2.0 yr AAA/Aaa/AAA Swaps + 6 bp A-3B 636 mln 2.0 yr AAA/Aaa/AAA 1-mo Libor + 4 bp A-4A 250 mln 3.3 yr AAA/Aaa/AAA Swaps + 6 bp A-4B 255 mln 3.3 yr AAA/Aaa/AAA 1-mo Libor + 6 bp B 89 mln 2.04yr A+/Aa3/AA- 1-mo Libor + 28 bp