Who CIFG is…

The New Generation in Triple-A Financial Guaranty

Who CIFG is…

• A group of financial guaranty companies rated Aaa/AAA/AAA with experienced industry professionals in each business line

• Insurance companies with claims-paying resources well in excess of the rating agencies’ Triple-A levels

• Monoline insurers- CIFG capital is segregated to support both present and future bondholder

obligations

- CIFG ability and willingness to pay have received top ratings from Moody’s, Standard & Poor’s (S&P) and Fitch

• A member of an international group with a long and distinguished heritage in financial services

Overview: Progress to Date

CIFG is a group of Triple-A rated monoline financial

guarantors

• Capital: CIFG possesses well over $500 million in claims paying resources

• Business Progress: CIFG has insured over $8 billion in par since inception.

Market conditions have allowed better than expected pricing

• Licensing: CIFG is licensed in the European Community and in more than

half of all US states. Licensing in the US should approach all 50 states during

2004

Overview: CIFG Claims Paying Resources

CIFG is well capitalized

• The S&P Margin of Safety compares simulated depression losses with claims-paying resources based on actual and projected

portfolios. S&P calculates Margins of Safety for each of CIFG’s primary insurance companies: CDC IXIS Financial Guaranty

North America (CIFG NA) and CDC IXIS Financial Guaranty Europe (CIFG Europe)

• At year-end 2002, CIFG NA’s Margin of Safety was 2.0-2.1 and CIFG Europe’s was 1.5-1.6

• This ratio will likely fall as the portfolio grows; it reflects, however, management’s conservative approach to the business

Overview: CIFG Claims Paying Resources- cont’d

CIFG is well capitalized: June 30, 2003, Capital Pro Forma for Capital Issuance of Oct ‘03

As of June 30, 2003 $ Mil.Statutory Capital $382.1

Unearned Premium Reserves $39.4

PV Annual Premiums $45.6

Total Claims Paying Resources, Before New Capital $467.1

Capital Issuance (October 2003) $114.7

Total Claims Paying Resources, After New Capital $581.8

CIFG Financial Snapshot

CIFG’s key financials show its progress

$ Mil. Nine months ended Twelve Months Ended September 30, 2003 December 31, 2002

New Business:• Gross Par Written $5,741 $2,352

as of as of September 30, 2003 December 31, 2002

Portfolio:• Gross Par Outstanding $7,989 $2,375

Portfolio

CIFG grows with a high quality

risk portfolio September 30, 2003

$7,989 million of gross par outstanding

AAA66%

BBB11%

A16%

AA7%

Portfolio- cont’d

The risk portfolio is well diversified among business linesSeptember 30, 2003

$7,989 million of gross par outstanding

Europe Infrastructure

7%

US Structured Finance 42%Europe

Structured

Finance 19%

US Public Finance 31%

Europe Public Finance 1%

Licensing Expansion

CIFG has made major progress in U.S. licensing

• CIFG NA is currently licensed in over half of the states in the US 1.

• Licenses expected to approach all fifty US states during 2004

(1) Please refer to Appendix for a listing of US states in which CIFG NA is admitted

Corporate Structure and Capitalization CDC IXIS (Parent Company)

CIFG is a member of a major European financial group with a long and distinguished heritage

• CIFG is an independent subsidiary of CDC IXIS, a major European bank

• CDC IXIS comprises commercial and investment banking activities originally part

of Caisse des Depots (CDC) a nearly 200-year old French financial institution

entrusted with various public responsibilities for the benefit of French citizens

• In 2001, CDC IXIS was created by CDC. Later that same year, a portion of its

ownership interest was shifted to a joint venture between CDC and CNCE, the

association of French mutual savings banks, called EULIA

Corporate Structure and Capitalization CDC IXIS (Parent Company)– cont’d

Discussion of CIFG’s membership in a substantial financial group- cont’d

• In late 2003, CDC and CNCE announced that they had renegotiated their

respective ownership shares: By the end of July 2004 CNCE will own 100% of

CDC IXIS; CDC will in turn own 35% of CNCE and be its strategic

shareholder

• This new entity will be the third largest bank in France, with over €19 billion of

capital

Corporate Structure and Capitalization- cont’d

CIFG Holding

CIFG Services

CDC IXIS Financial Guaranty French Reinsurance CompanyInvested capital $500 million

CIFG EuropeMonoline incorporated in France

Invested capital €32 million

CAPITAL SUPPORT

REINSURANCE

CAPITAL SUPPORT

The structure of CIFG

CIFG NAMonoline incorporated in the U.S.

Invested capital $100 million

REINSURANCE

Corporate Structure and Capitalization (cont’d)Professional Team – Business Units

Rita DugganManaging Director

Harold Cornwall

Associate

Richard Zogheb

Director

Violet DiamantDirector

Joe Keepers

Director

Zhengyuan Lu

Director

Victor MahoneyManaging Director

Rémi CharrierDirector

Pascale VialaDirector

Bill HoganDirector

Michael BartschVice President

Michael UhouseDirector Olivier de Duve

Director

European Infrastructure and Public Finance

Charles GundyManaging Director

European Structured Finance

Alan DouglasDirector

Tom CollimoreDirectorInvestor

Development

Pat McCormick

Director

Leigh SchafferAss’t. Vice President

Steven KleinManaging Director Global Single Risk

and Marketing

Jonathan Sloan

Associate

Michel RouziouxManaging Director

European Operationsand Reinsurance

Jacques RolfoCEO

Jeremy ReifsnyderManaging Director Global Structured

Finance

Walid Ben KhecibSenior Analyst

US Structured FinanceUS Public Finance

Minnie LauSenior Analyst

Professional Team – Corporate Functions

Michael Freed

General Counsel,CIFG Holding Marc de Bréchard

Financial Engineering and Systems

Chuck WebsterChief Risk Officer

Jim O’KeefeCFO

DirectorSystems

Patrick AhteckVice President

Julien BramelVice President

Paul KwiatkowskiSurveillance

Joseph SpivackDirector

John GarrityController - US

Stan CotekPlanning/Analysis

François ColinetController - Europe

Kathleen CullyGeneral Counsel,

CIFG NA

Lisa HellerVice President

Feng LiVice PresidentHélène Lepeu

Senior Accountant

Jayce FoxDirector

Jacques RolfoCEO

Edward NapoliAss’t General Counsel

Tom StruppeckHead of Actuarial

Studies

Pamela BrownHuman Resources

Corporate Strategy: US Public Finance

Public Finance has targeted traditional, capacity-constrained, and other opportunities

• Initial activity was in the secondary market to take advantage of

pricing and competitive dynamics and in the New York primary

market where CIFG NA was first licensed

• CIFG has shifted focus to new issue (negotiated and competitive)

markets across the country as licenses are approved in each state

Representative Transactions: US Public Finance

Primary market-NYS Dormitory Authority (State University) ($50 million Series 2002)-New York City GO ($45 million Series 2002E and $50 million Series 2003B)-NYS ESDC $100 million of Auction Rate Securities for refunding (Series 2002B)-NYS Dormitory Authority (City University) ($50 million Series 2003)-Long Island Power Authority (LIPA) ($100 million Series 2003)-NYS Dormitory Authority (NYSDA Pool) ($27 million Series 2003)-NYS Tobacco Appropriation Debt (2 issues; $150 million)-O’Hare Airport, Chicago Illinois ($150 million Series 2003 B)

Secondary market-Over $500 million of bonds insured -Representative secondary market names include

» New York City, Port Authority of NY and NJ» Puerto Rico GO and related credits» California GO, appropriation credits and DWR» Province of Quebec/Hydro Quebec

Portfolio Distribution: US Public Finance

Toll Roads10%

City/county GO's10%

State tax backed5%

State GO &

Appropriations32%

Education4%

Local tax backed3%

Utility Systems

15%

Public Power

14%

Higher Ed2%

Airports

5%

CIFG US Public Finance

September 30, 2003

$2,451 million

Corporate Strategy: US Structured Finance

Focus has been on low risk (AAA or higher attachment points) transactions with sizable premiums

• The Collateralized Debt Obligation (CDO) market and insured Enhanced

Equipment Trust Certificates (EETCs) have provided numerous such opportunities

due to investor and guarantor capacity constraints

• Continued portfolio diversification

» Commercial Mortgage Backed Securities (CMBS)

» Residential Mortgage Backed Securities (RMBS)

» Credit card transactions

» Auto loan transactions

» Future flow transactions

Investors/Counterparties: US Structured Finance

Investors and counterparties have included:

Bank of America Bear Stearns

BNP Paribas Citigroup

CSFB Deutsche Bank

Goldman Sachs HSBC

JP Morgan Chase Lehman Brothers

Merrill Lynch Morgan Stanley

Royal Bank of Scotland UBS

Representative Transactions: US Structured Finance

Examples of US structured finance transactions closed in 2003 include:- CDOs

» Investment grade CDOs » Multi-sector (ABS) CDOs

- Consumer Assets» Auto loans » Home equity lines of credit (HELOCs)» Rental cars» Sub prime Residential Mortgage Backed Securities (RMBS)

- Insured Aircraft Transactions» Insured EETC for major European airline » Insured aircraft lease portfolio

Portfolio Distribution: US Structured Finance

US Structured Finance

September 30, 2003

$ 3,343 million

CDO Investment

Grade31%

Other4%

Insured EETC23%

CDO Asset Backed

42%

Corporate Strategy: Europe

There are two sub sectors for the European business

• Infrastructure/Public Finance- Direct government issues

- Infrastructure financing

- Private Finance Initiative (PFI)

• Structured Finance- Collateralized Debt Obligations (CDOs)

- Asset-backed Securities (ABS)

- Residential Mortgage-Backed Securities (RMBS)

- Commercial Mortgage-Backed Securities (CMBS)

Representative Transactions: Europe

CIFG Europe’s closed transactions include:- Public Finance

» City of Marseilles

- Infrastructure Finance

» Anglian Water

» Rome Airport

» Prado Tunnel, Marseilles

- Structured Finance

» Leveraged loan CLOs

» Multi-sector (ABS) CDOs

» Italian consumer finance securitization

Portfolio Distribution: Europe

CIFG Europe Portfolio

September 30, 2003

$2,195 million

Infrastructure

27%

Public Finance

2%

CDOs64%Other

7%

Underwriting and Oversight

Risk management is autonomous, centralized and conservative

• Risk Management reports directly to CEO

• Centralized decision-making ensures consistent application of underwriting standards

• All transactions are underwritten to no-loss standard

• No Watch List items or downgrades to date

Reinsurance

Reinsurance helps CIFG adjust the portfolio

• Facultative strategy

• Reinsurance functions as a risk management tool

• Reinsurers have been rated at least Double-A

Rating Agency Perspectives

How the rating agencies determine that CIFG is Triple-A

• Moody’s Investor Services Aaa- In addition to its qualitative review of management expertise, risk

management, ownership and business plan, Moody’s utilizes a model that “estimates the entire potential loss distribution associated with the guarantor’s insured exposure”. The model assesses risk by credit quality, maturity, distribution across sectors and, importantly, risk concentrations

• Standard & Poor’s AAA- Along with its qualitative review, S&P employs a quantitative stress test

that subjects the company’s capital base to an unprecedented depression scenario and assesses the adequacy of that capital to pay assumed claims and continue its business

• Fitch Ratings AAA- Considers capitalization, ownership, business plan, management and

anticipated portfolio risk profile

Liquidity

CIFG keeps a short duration, top-quality investment portfolio

• CIFG’s liquidity requirements are met by maintaining a short

duration investment portfolio

• The investment portfolio will be adjusted to reflect expected

liabilities as the insured portfolio grows and evolves

Investment Portfolio Composition

June 30, 2003

S&P Rating: AAA/A-1

Average Duration: less than one year

US Treasury Notes

20%Municipal Bonds

1%

Money Market

67%

T Bills

10%

Commercial Paper

2%

Consolidated Balance Sheet: CIFG

Condensed Consolidated Balance SheetCondensed Consolidated Balance Sheet

French GAAP-unauditedFrench GAAP-unaudited

€ ‘000 December 31, 2002 (1)

Investments € 372,009 € 278,148Deferred acquisition costs 14,301 8,007

Intangible assets and goodwill 7,235 ---

Other 8,202 10,112

Assets Assets

Total assets € 401,747 € 296,267

Liabilities Liabilities

Deferred premium reserves € 33,347 € 15,169Losses and LAE reserves 548 131Other 10,841 14,819

Total liabilities 44,736 30,119

Shareholder’s equity 357,011 (2) 266,148

Total liabilities and shareholder’s equity € 401,747 € 296,267

(1) Derived from audited financial statements. (2) In October CIFG issued additional equity capital of €100 million

June 30,2003

CIFG in conclusion

CIFG is an important addition to the financial guaranty industry

- Triple-A by Moody’s, Standard & Poor’s and Fitch

- Rigorous risk management culture

- Low-risk insured portfolio

- Experienced staff in all markets

- Strong, committed parent with long, distinguished history in

financial services

Business Contacts

• Chief Executive Officer - Jacques Rolfo +1 212 909 3936 [email protected]

• Global Single Risk & Marketing- Steven Klein +1 212 909 3927 [email protected]

• Global Structured Finance- Jeremy Reifsnyder +1 212 909 3946 [email protected]

• European Infrastructure and Public Finance

- Alan Douglas + 44 207 648 6955 [email protected]• European Structured Finance

- Charles Gundy + 44 207 648 6954 [email protected]• Reinsurance

- Michel Rouzioux + 33 158 55 65 12 [email protected]• Investor Development

- Tom Collimore + 1 212 909 3952 [email protected]

Websites

• Rating agency reports, financial statements and other materials are available at:

- www.cifg.com

• Information of other members of the group of companies is

available at: - www.caissedesdepots.fr Click on HTML Version/ News/

Group

- www.groupe.caisse-epargne.fr Click on Notre Groupe/ Site Institutionnel/ British Flag/ Press Room

- www.cdcixis.com click on English version/Media/Press Releases

Appendix

Alabama Alaska Arkansas Colorado

Delaware District of Columbia Florida Georgia

Idaho Illinois Indiana Iowa

Kentucky Louisiana Massachusetts Michigan

Missouri Montana Nebraska Nevada

New Jersey New York North Dakota Ohio

Oklahoma Oregon Pennsylvania South Carolina

South Dakota Texas Utah Virginia

Washington West Virginia Wyoming

US Licenses as of March 1, 2004

Who CIFG is…

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