SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

                  Annual Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                For the fiscal year ended Commission file number
                           December 31, 1995 333-14293


                             LEHMAN ABS CORPORATION
       (as depositor under the Trust Agreement, dated as of January 26, 1995, as
amended and restated by the Amended and Restated  Trust  Agreement,  dated as of
February 1, 1995,  which formed the Lehman Home Equity Loan Trust 1995-1  which,
pursuant to an  Indenture,  dated as of January 1, 1995,  issued the Lehman Home
Equity  Loan Trust  1995-1,  Home Equity Loan  Asset-Backed  Term Notes,  Series
1995-1)

                             LEHMAN ABS CORPORATION
             (Exact name of Registrant as specified in its Charter)

         Delaware                            13-3447441
(State or other jurisdiction of          (I.R.S. Employer
incorporation or organization)        Identification Number)

                 Three World Financial Center
                       200 Vesey Street
                   New York, New York 10285
           (Address of principal executive offices)

Registrant's telephone number, including area code:  (212) 526-7000
Securities registered pursuant to Section 12(b) of the Act:  Not Applicable.
Securities registered pursuant to Section 12(g) of the Act:  Not Applicable.

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes No X

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of Registrant's  knowledge,  in definitive proxy or information  statements
incorporated  by reference in Part III of the Form 10-K or any amendment to this
Form 10-K. [ ].

     Aggregate  market  value of  voting  stock  held by  non-affiliates  of the
Registrant as of December 31, 1995: Not Applicable.

Number of shares of common stock outstanding as of December 31, 1995: 
 Not Applicable.

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                       DOCUMENTS INCORPORATED BY REFERENCE

Documents  in Part II and  Part  IV  incorporated  herein  by  reference  are as
follows:

                  Monthly  Reports to  Noteholders as to  distributions  made in
         February,  March, April, May, June, July, August,  September,  October,
         November and December 1995 are hereby  incorporated herein by reference
         as exhibits to  Registrant's  Current Report on Form 8-K filed with the
         Securities and Exchange Commission on July 17, 1997.



                                     PART I


Item 1.  Business.

         The trust relating to Lehman Home Equity Loan Trust 1995-1, Home Equity
Loan  Asset-Backed Term Notes,  Series 1995-1 ("Series 1995-1),  was established
pursuant  to a Trust  Agreement  dated as of January  26,  1995,  as amended and
restated by the Amended and Restated  Trust  Agreement,  dated as of February 1,
1995, among Lehman ABS Corporation, as depositor, Mortgage Assets Trading, Inc,,
as holder of the designated  certificate,  and Chemical Bank Delaware,  as owner
trustee.

         Pursuant to an Indenture,  dated as of January 1, 1995,  between Lehman
Home Equity Loan Trust 1995-1, as issuer (the "Issuer"),  and The First National
Bank of Chicago,  as indenture  trustee (the  "Indenture  Trustee"),  the Issuer
issued Lehman Home Equity Loan Trust 1995-1,  Home Equity Loan Asset-Backed Term
Notes,  Series 1995-1 (the "Term Notes").  The Term Notes are secured by certain
adjustable  rate home equity  revolving  credit line loans made or to be made in
the future (the "Mortgage  Loans")  secured by first or second deeds of trust or
mortgages on  residential  properties  (which are primarily  one- to four-family
residences),  the  collections  in respect of such Mortgage  Loans,  and certain
other property  relating to such Mortgage Loans. The Term Notes have the benefit
of an irrevocable and unconditional  financial  guaranty insurance policy issued
by Capital  Markets  Assurance  Corporation.  The  Noteholders  receive  monthly
reports regarding distributions.

         Information  with  respect to the  business  of the Trust  would not be
meaningful  because the only  "business"  of the Trust is the  collection on the
Mortgage  Loans and  distribution  of  payments on the Notes and the Lehman Home
Equity  Loan Trust  1995-1,  Home  Equity Loan  Asset-Backed  Certificates  (the
"Certificates")  to the Noteholders and  Certificateholders,  respectively.  The
information  relating to the  distribution  of payments  on the  Noteholders  is
accurately summarized in the monthly reports to Noteholders,  which are filed on
Form 8- K. There is no additional relevant  information to report in response to
Item 101 of Regulation S-K.

Item 2.  Properties.

         The  Issuer  owns  no  property.  The  Term  Notes,  in the  aggregate,
represent debt in a trust estate consisting primarily of the Mortgage Loans. The
Trust will acquire title to real estate only upon default of the borrowers under
a Mortgage Loan. Therefore, this item is inapplicable.

Item 3.  Legal Proceedings.

         None.

Item 4.  Submission of Matters to a Vote of Security Holders.

         No matters were  submitted to a vote of  Noteholders  during the fiscal
year covered by this report.

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                                     PART II


Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters.

         The  Term  Notes  represent,  in  the  aggregate,  debt  in  the  Trust
consisting primarily of the Mortgage Loans.

(a)  Market  Information.  Not applicable There is no established public trading
     market for  Registrant's  Notes.  Registrant  believes the Notes are traded
     primarily in intra-dealer markets and non-centralized inter-dealer markets.

(b)  Holders. The number of registered holders of the Notes on December 31, 1995
     was 6.

(c)      Dividends. Not applicable. The information regarding dividends required
         by  Sub-paragraph  (c) of Item 201 of  Regulation  S-K is  inapplicable
         because the Trust does not pay  dividends.  However,  information as to
         distribution  to  Noteholders  is provided  in the  monthly  reports to
         Noteholders  for each month of the fiscal year in which a  distribution
         to Noteholders was made.

Item 6.  Selected Financial Data.

         Not  Applicable.  Because of the limited  activities of the Trust,  the
Selected  Financial  Data  required by Item 301 of  Regulation  S-K does not add
relevant  information  to that  which is  provided  by the  Monthly  Reports  to
Noteholders.

Item 7. Management's  Discussion and Analysis of Financial Condition and Results
     of Operations.

         Not Applicable.  The information required by Item 303 of Regulation S-K
is  inapplicable  because the Trust does not have  management per se, but rather
the Trust has an  Indenture  Trustee who causes the  preparation  of the Monthly
Reports to  Noteholders.  The  information  provided by the  Monthly  Reports to
Noteholders  does  provide the  relevant  financial  information  regarding  the
financial status of the Trust Estate.

Item 8.  Financial Statements and Supplementary Data.

         Monthly  Reports to Noteholders as to  distributions  made in February,
March, April, May, June, July, August, September, October, November and December
1995 are hereby  incorporated  herein by reference  as exhibits to  Registrant's
Current Report on Form 8-K filed with the Securities and Exchange  Commission on
July 17, 1997.

Independent Accountant's Report on Servicer's  servicing  activities is filed as
     Exhibit 2 under Item 14(a) hereof.

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Item 9.  Changes  in  and  Disagreements  with  Accountants  on  Accounting  and
     Financial Disclosure.
 None.
                                    PART III


Item 10.  Directors and Executive Officers of Registrant.

          Not  Applicable.  The  Trust  does not  have  officers  or  directors.
     Therefore,  the information required by items 401 and 405 of Regulation S-K
     is inapplicable.
Item 11.  Executive Compensation.

          Not Applicable.  The Trust does not have officers or directors to whom
     compensation needs to be paid. Therefore,  the information required by Item
     402 of Regulation S-K is inapplicable.
Item 12.  Security Ownership of Certain Beneficial Owners and Management.

         (a)      Security  ownership of certain  beneficial  owners.  Under the
                  Indenture,  the holders of the Notes generally do not have the
                  right  to  vote  and  are  prohibited   from  taking  part  in
                  management of the Trust. For purposes of this Item and Item 13
                  only,   however,   the  Noteholders  are  treated  as  "voting
                  security" holders.

                  As of December 31, 1995,  the  following  are the only persons
                  known to Registrant to be the  beneficial  owners of more then
                  5% of any class of voting securities.

TITLE                      NAME AND                AMOUNT AND NATURE    PERCENT
OF                         ADDRESS OF              OF BENEFICIAL        OF
CLASS                      BENEFICIAL OWNERS         OWNERSHIP           CLASS

Series 1995-1,             Bankers Trust Company      $ 47,000,000    36.70%
Term Notes                 c/o BT Services Tennessee Inc.
                           Pension Trust Services
                           648 Grassmere Park Drive
                           Nashville, TN 37211

Series 1995-1,  Chase Manhattan Bank/Chemical      $ 15,000,000   11.71%
Term Notes      Auto Settle Department
                4 New York Plaza, 4th Floor
                New York, New York 10004

Series 1995-1,  French American Banking Corp.      $ 12,000,000   9.37%
Term Notes      200 Liberty, 20th Floor
                New York, New York 10281

Series 1995-1,  Morgan Guaranty Trust Co.          $ 50,000,000   39.04%
Term Notes         of New York
                522 Fifth Avenue, 17th Floor
                New York, New York 10036

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          (b) Security ownership of management.  Not Applicable.  The Trust does
     not have any officers or directors.  Therefore, the information required by
     Item 403 of Regulation S-K is inapplicable.
         (c)      Changes in control.  Not Applicable.  Since Noteholders do not
                  possess, directly or indirectly,  the power to direct or cause
                  the  direction  of the  management  and policies of the Trust,
                  other  than in the  event of  default  and as set forth in the
                  Indenture,  the information requested with respect to Item 403
                  of Regulation S-K is inapplicable.

Item 13.  Certain Relationships and Related Transactions.

         (a)      Transactions  with management and others.  Registrant knows of
                  no  transaction  or series of  transactions  during the fiscal
                  year  ended  December  31,  1995,  or any  currently  proposed
                  transaction or series of transactions,  in an amount exceeding
                  $60,000    involving    the    Registrant    in   which    the
                  Certificateholders identified in Item 12(a) had or will have a
                  direct or indirect material interest.  There are no persons of
                  the  types  described  in  Item  404(a)(1),  (2)  and  (4)  of
                  Regulation  S-K;  however,  the  information  required by Item
                  404(a)(3)  of  Regulation  S-K  is  hereby   incorporated   by
                  reference in Item 12(a) herein.

         (b)      Certain business relationships.  None.

          (c)  Indebtedness of management.  Not  Applicable.  The Trust does not
     have  management  consisting of any officers or directors.  Therefore,  the
     information required by Item 404(c) of Regulation S-K is inapplicable.

          (d) Transactions  with promoters.  Not Applicable.  The Trust does not
     use  promoters.  Therefore,  the  information  required  by Item  404(d) of
     Regulation S-K is inapplicable.


                                     PART IV


Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

(a)  The following is a list of documents filed as part of this report:
                  EXHIBITS

                  99.1 Monthly Report to Noteholders as to distributions made in
                  February,  March,  April, May, June, July, August,  September,
                  October,  November and December  1995 are hereby  incorporated
                  herein by reference as exhibits to Registrant's Current Report
                  on Form 8-K filed with the Securities and Exchange  Commission
                  on July 17, 1997.

99.2 Independent Accountant's Report on Servicer's servicing activities.
         (b)      No Reports on Form 8-K were filed  during the last  quarter of
                  the period covered by this Report.

         (c)      The exhibits  required to be filed by  Registrant  pursuant to
                  Item 601 of Regulation S-K are listed above and in the Exhibit
                  Index that immediately follows the signature page hereof.


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(d)  Not  Applicable.  The Trust does not have any  subsidiaries  or affiliates.
     Therefore,  no financial  statements are filed with respect to subsidiaries
     or affiliates.


                  SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED
                  PURSUANT TO SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE
                  NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT

                  No  annual  report,  proxy  statement,  form of proxy or other
                  soliciting  material  has been  sent to  Noteholders,  and the
                  Registrant  does not  contemplate  sending any such  materials
                  subsequent to the filing of this report.

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                                    SIGNATURE

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

         LEHMAN HOME EQUITY LOAN TRUST 1995-1

         By:      Residential Funding Corporation,
          as Administrator



         Name:
         Title



Date:    July 15, 1997



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                                  EXHIBIT INDEX

                                                                  Sequential
Exhibit           Document                                        Page Number

99.1              Monthly Reports to Noteholders as to distributions made   *
                  in January, February, March, April, May, June, July,
                  August, September, October, November and December 1995
                  (hereby incorporated herein by reference as exhibits to
                  Registrant's Current Report on Form 8-K filed with the
                  Securities and Exchange Commission on July 17, 1997).

99.2              Independent Accountant's Report on Servicer's servicing 
                    activities.




-----------------------------------------------------





*        Incorporated by reference.

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