<p><br/></p><p><span lang="en-ca"><b><font face="Arial Narrow" size="4">CREDIT COMMENT</font></b></span><b><span lang="en-us"></span></b><span lang="en-us"></span><span lang="en-us"></span><span lang="en-us"></span>
<br/><span lang="en-us"><font face="Verdana" color="#000000" size="2">December 07, 2007</font><font face="Verdana">
</font></span></p><p align="justify"><span lang="en-us"><b><i><font face="Verdana" size="2">Please find attached a comment from our London-based Financials analyst, Hank Calenti, on the US Government's decision to freeze rates on sub-prime ARMs.</font></i></b><i></i></span></p><p align="justify"><span lang="en-gb"><b><font face="Verdana" color="#003366" size="1">Confiscation of (previously) anticipated excess spread within residential mortgage backed-securities (RMBS) is the consequence of the US Government plan to freeze the interest rates of certain sub-prime borrowers with adjustable rate mortgages.&nbsp; As such, it is a net neutral to negative event for monolines and US mortgage originators, in our view. It is also a net negative for US RMBS investors. (Total 6 pages)</font></b></span></p><p align="justify"><span lang="en-gb"><strong><font face="Verdana" color="#003366" size="1"></font></strong></span></p><p align="justify"><span lang="en-gb"><font face="Verdana" color="#003366" size="1"><font color="#000000">Can anybody tell me how to earn 金钱? I desperately need it. You may write in chinese. Please~~~</font></font></span></p>