JPMorgan Worldwide Securities Services Wins Mandate for First Dedicated Tri-Party ABS Deal in Europe

LONDON, August 30/PRNewswire/ -- JPMorgan (NYSE: JPM) Worldwide Securities Services today announced that it has been appointed by WestLB and the investment bank of JPMorgan as tri-party collateral manager for the first dedicated Asset Backed Securities (ABS) tri-party deal in Europe.

The need for collateral management services has increased as the demand
for secured lending has grown. ABS issuance in Europe is growing faster than
in the US and the EU Capital Requirements Directive is expected to increase
ABS usage as collateral. In addition, a number of other drivers such as Basel
II, the recent loss of state guarantees for Germany's landesbanks and new
international financial reporting standards are creating additional demand
for collateralisation.

WestLB is one of Germany's leading financial services providers and
focuses on lending, structured finance and capital market products. JPMorgan
is a leading global financial services firm and its investment banking
division is a provider of integrated capital markets and advisory solutions
to clients.

Andy Wise, Director of Credit Repo at WestLB, said, "We are impressed by
the pricing capabilities and the commitment to collateral management of
JPMorgan Worldwide Securities Services and we are pleased to be working with
them on the first deal of its kind in the European market."

Mike Garrett, Head of European Repo Sales at JPMorgan, said, "We selected
JPMorgan Worldwide Securities Services because of its superior service
offering, its experience in working with investment banks such as ourselves
and its flexibility in providing services tailored to this groundbreaking

Kirit Bhatia, Global Head of Product Management for the Securities
Collateral Management group at JPMorgan Worldwide Securities Services, said,
"We are delighted to be working with WestLB and the investment bank of
JPMorgan on the first dedicated ABS tri-party deal in Europe. The ABS market
is expected to grow by over 40% in Europe this year and we anticipate that
this deal will be the first of many as ABS becomes more widely accepted as

Investors seeking more attractive returns and reduced risk from
counterparty insolvencies on short-term cash investments increasingly use
sale and repurchase transactions, known as "repos". In a repo agreement, a
dealer sells securities to a customer while simultaneously agreeing to
repurchase them at a future date and pre-determined price. JPMorgan Worldwide
Securities Services acts as the intermediary agent to both the cash provider
(the buyer) and the cash borrower (the seller).

JPMorgan Worldwide Securities Services is one of the market-leaders in
collateral management, offering an integrated service to buyers and sellers,
servicing confidential lender/borrower relationships. Since 1992, JPMorgan's
Clearance and Collateral Management group has provided collateral management
services to a large number of financial institutions globally and is the
top-rated front office collateral manager. It provides expertise on
eligibility and concentration limit testing, daily mark-to-market,
substitution management, reporting and custodial services. This announcement
follows the recent launch of JPMorgan CommanDsm, the industry's first
full-service over-the-counter derivatives collateral management solution.

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