eTrade 2005 Annual Report Download - page 150

Table of Contents
table, the effect of a variation in a particular assumption on the fair value of the preference shares is calculated without changing any
other assumption. Changes in one factor may result in changes in another factor (for example, increases in market interest rates could
result in lower prepayments and increased credit losses), which could magnify or counteract the sensitivities.
The Company entered into management agreements to provide certain collateral management services for the CDOs. As compensation
for its services, it receives a management fee from the trustee based on the quarterly amount of assets managed (as defined.) During
2005, the Company earned $4.2 million of management fees under the CDOs.
At December31, 2005, the Company managed both its on-balance sheet asset-backed securities and the off-balance sheet securitized
asset-backed securities of the CDOs, which are presented in the following table (in thousands):
Managed on-balance sheet asset-backed securities, classified as:
Available-for-sale
$
1,365,754
Trading securities
63,956
Total managed on-balance sheet asset-backed securities
1,429,710
Managed off-balance sheet securitized asset-backed securities:
CDO I
104,157
CDO II
280,657
CDO III
284,989
CDO IV
274,599
Total managed off-balance sheet securitized asset-backed securities
944,402
Total managed asset-backed securities
$
2,374,112
Securitized Consumer Finance Receivables
The origination and servicing businesses of Consumer Finance Corporation were sold in late 2005. As a result of the sale, the
Company retained the consumer receivables and beneficial interests in the trusts. Prior to the sale, Consumer Finance Corporation
securitized RV and marine consumer receivables by sales or other transfers to ETCF Asset Funding Corporation through the formation
of trusts. There were no securitizations of consumer receivables in 2005. During 2004, Consumer Finance Corporation securitized
approximately $0.3 billion of RV and marine receivables. On October20, 2003, the Company acquired ETCF Asset Funding Corporation
and the retained beneficial interests in four trusts.
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2006. EDGAR Online, Inc.