UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549

                                    FORM 10-K

     [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

     For the fiscal year ended December 31, 2006

     [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     ACT OF 1934

     For the transition period to __________ from _______________

     Commission file number of issuing entity: 333-121914-18

              Morgan Stanley ABS Capital I Inc. Trust 2006-NC1
          (Exact name of issuing entity as specified in its Charter)

                      Morgan Stanley ABS Capital I Inc.
           (Exact name of depositor as specified in its Charter)

                     Morgan Stanley Mortgage Capital Inc.
             (Exact name of sponsor as specified in its Charter)

                                           Pooling-Tier REMIC-1  30-0350956
                                           Pooling-Tier REMIC-2  30-0350957
                                               Lower Tier REMIC  30-0350958
                                               Upper Tier REMIC  30-0350959
                 New York                         Grantor Trust  30-0350968
           (State or other jurisdiction                  (I.R.S. Employer
         incorporation or organization                Identification Number)
               of issuing entity)                        of issuing entity)

          1585 Broadway
          New York, New York                                    10036
(Address of principal executive offices                     (Zip Code of
         of issuing entity)                                issuing entity)

            Issuing entity's telephone number, including area code:
                               (212) 761-4000

          Securities registered pursuant to Section 12(b) of the Act:
                                     None.

          Securities registered pursuant to Section 12(g) of the Act:
                                     None.

     Indicate by check mark if the registrant is a well-known seasoned
     issuer, as defined in Rule 405 of the Securities Act.  Yes [ ]  No[X]

     Indicate by check mark if the registrant is not required to file
     reports pursuant to Section 13 or Section 15(d) of the Act.  Yes[ ] No[X]

     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 [X]  No [ ]

     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 the 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.         [ ]

     Indicate by check mark whether the registrant is a large accelerated
     filer, an accelerated filer, or a non-accelerated filer.  See definition
     of "accelerated filer" in Rule 12b-2 of the Exchange Act.  (Check One):

      Large accelerated filer [  ]  Accelerated Filer [  ]
      Non-accelerated Filer [X]

     Indicate by check mark whether the registrant is a shell company (as
     defined in rule 12b-2 of the Act).  [  ] Yes  [X] No

     State the aggregate market value of the voting and non-voting common
     equity held by non-affiliates computed by reference to the price at
     which the common equity was last sold, or the average bid and asked
     price of such common equity, as of the of the last business day of
     the registrant's most recently completed second fiscal quarter

     Not Applicable.

     DOCUMENTS INCORPORATED BY REFERENCE

     See Item 15.

     PART I

     ITEM 1.  Business.

     Not Applicable.

     ITEM 1A.  Risk Factors.

     Not Applicable.

     ITEM 1B.  Unresolved Staff Comments.

     None.

     ITEM 2.  Properties.

     Not Applicable.

     ITEM 3.  Legal Proceedings.

     Not Applicable.

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

     Not Applicable.

     PART II

     ITEM 5.  Market for Registrant's Common Equity, Related Stockholder
     Matters and Issuer Purchases of Equity Securities.

     Not Applicable.

     ITEM 6.  Selected Financial Data.

     Not Applicable.

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

     Not Applicable.

     ITEM 7A.  Quantitative and Qualitative Disclosures About Market Risk.

     Not Applicable.

     ITEM 8.  Financial Statements and Supplementary Data.

     Not Applicable.

     ITEM 9.  Changes in and Disagreements with Accountants on Accounting and
     Financial Disclosure.

     Not Applicable.

     ITEM 9A  Controls and Procedures.

     Not Applicable.

     ITEM 9B. Other Information.

     None.

     PART III

     ITEM 10.  Directors, Executive Officers and Corporate Governance.

     Not Applicable.

     ITEM 11.  Executive Compensation.

     Not Applicable.

     ITEM 12.  Security Ownership of Certain Beneficial Owners and Management
               and Related Stockholder Matters.

     Not Applicable.

     ITEM 13.  Certain Relationships and Related Transactions, and
               Director Independence.

     Not Applicable.

     ITEM 14.  Principal Accounting Fees and Services.

     Not Applicable.

     PART IV

     Item 1112(b)(2) of Regulation AB, Significant Obligor Financial
     Information.

     No single obligor represents 10% or more of the pool assets held by the
     issuing entity.

     Item 1114(b)(2) and Item 1115(b) of Regulation AB , Significant
     Enhancement Provider Information.

     None.

     Item 1117 of Regulation AB, Legal Proceedings.

     None.

     Item 1119 of Regulation AB, Affiliations and Certain Relationships and
     Related Transactions.

     None.

     Item 1122 of Regulation AB, Compliance with Applicable Servicing Criteria.

     See Exhibit 33 and 34.

     Item 1123 of Regulation AB, Servicer Compliance Statement.

     See Exhibit 35.

     ITEM 15. Exhibits, Financial Statement Schedules.

     (a) List the following documents filed as a part of the report:

         (1) Not Applicable.

         (2) Not Applicable.

         (3)

        Exhibits 4 was filed as part of the Registrant's Current Report on
        Form 8-K/A filed on February 28, 2006 and is incorporated  by
        reference:

        Exhibit 4.1 Pooling and Servicing Agreement, dated as of January 1,
        2006, by and among the Company, as depositor, HomEq Servicing
        Corporation, as servicer, JPMorgan Chase Bank, National Association,
        as servicer, NC Capital Corporation, as responsible party, and Deutsche
        Bank National Trust Company, as trustee.

        Exhibits 10 were filed as part of the Registrant's Current Report on
        Form 8-K filed on February 14, 2006 and are incorporated by
        reference:

        Exhibit 10.1 Third Amended and Restated Mortgage Loan Purchase and
        Warranties Agreement, by and between Morgan Stanley Mortgage Capital
        Inc., as purchaser, and NC Capital Corporation, as loan seller, dated
        as of December 1, 2005 (included as Exhibit U to Exhibit 4.1).

        Exhibit 10.2 ISDA Master Agreement, dated as of January 27, 2006, by
        and between Morgan Stanley Mortgage Capital Inc., the swap provider,
        and Deutsche Bank National Trust Company, the trustee (included as
        Exhibit T to Exhibit 4.1).

        Exhibit 10.3 Schedule to the Master Agreement, dated as of January 27,
        2006, by and between Morgan Stanley Mortgage Capital Inc., the swap
        provider, and Deutsche Bank National Trust Company, the trustee
        (included as Exhibit T to Exhibit 4.1).

        Exhibit 10.4 Credit Support Annex, dated as of January 27, 2006, by
        and between Morgan Stanley Mortgage Capital Inc., the swap provider,
        and Deutsche Bank National Trust Company, the trustee (included as
        Exhibit T to Exhibit 4.1).

        Exhibit 10.5 Confirmation, dated as of January 27, 2006, by and between
        Morgan Stanley Mortgage Capital Inc., the swap provider, and Deutsche
        Bank National Trust Company, the trustee (included as Exhibit T to
        Exhibit 4.1).

        Exhibit 10.6 Guarantee, dated as of January 27, 2006, by Morgan
        Stanley (included as Exhibit T to Exhibit 4.1).

        Exhibit 10.7 Subservicing Agreement, dated as of January 1, 2006,
        between JPMorgan Chase Bank, National Association and Chase Home
        Finance LLC.

        Exhibit 31 Section 302 Certification.

        Exhibit 33.1 HomEq Servicing Corporation's Annual Report on Assessment
        of Compliance for Year End December 31, 2006.

        Exhibit 33.2 Trustee's Annual Report on Assessment of Compliance for
        Year End December 31, 2006.

        Exhibit 34.1 Attestation Report on Assessment of Compliance with
        Servicing Criteria for HomEq Servicing Corporation's Report (Exhibit
        33.1) for Year End December 31, 2006.

        Exhibit 34.2 Attestation Report on Assessment of Compliance with
        Servicing Criteria for Trustee's Report (Exhibit 33.2) for Year End
        December 31, 2006.

        Exhibit 35.1 HomEq Servicing Corporation's Annual Statement of
        Compliance for Year End December 31, 2006.

     (b) See (a) above.

     (c) Not Applicable.






                                      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.


                             By: Morgan Stanley ABS Capital I Inc.,
                                 as Depositor

                                      By:  /s/ Steven Shapiro
                                           Steven Shapiro
                                           Vice President






     Date: March 30, 2007

     EXHIBIT INDEX

     Exhibit Document


        Exhibit 4 was filed as part of the Registrant's Current Report on
        Form 8-K/A filed on February 28, 2006 and is incorporated by
        reference:

      4.1 Pooling and Servicing Agreement, dated as of January 1, 2006, by
          and among the Company, as depositor, HomEq Servicing Corporation,
          as servicer, JPMorgan Chase Bank, National Association, as servicer,
          NC Capital Corporation, as responsible party, and Deutsche Bank
          National Trust Company, as trustee.

      Exhibits 10 were filed as part of the Registrant's Current Report on
      Form 8-K filed on February 14, 2006 and are incorporated by
      reference:

      10.1 Third Amended and Restated Mortgage Loan Purchase and
           Warranties Agreement, by and between Morgan Stanley Mortgage
           Capital Inc., as purchaser, and NC Capital Corporation, as loan
           seller, dated as of December 1, 2005 (included as Exhibit U to
           Exhibit 4.1).

      10.2 ISDA Master Agreement, dated as of January 27, 2006, by and between
           Morgan Stanley Mortgage Capital Inc., the swap provider, and
           Deutsche Bank National Trust Company, the trustee (included as
           Exhibit T to Exhibit 4.1).

      10.3 Schedule to the Master Agreement, dated as of January 27, 2006,
           by and between Morgan Stanley Mortgage Capital Inc., the swap
           provider, and Deutsche Bank National Trust Company, the trustee
          (included as Exhibit T to Exhibit 4.1).

      10.4 Credit Support Annex, dated as of January 27, 2006, by and
           between Morgan Stanley Mortgage Capital Inc., the swap provider,
           and Deutsche Bank National Trust Company, the trustee (included
           as Exhibit T to Exhibit 4.1).

      10.5 Confirmation, dated as of January 27, 2006, by and between Morgan
           Stanley Mortgage Capital Inc., the swap provider, and Deutsche
           Bank National Trust Company, the trustee (included as Exhibit T to
           Exhibit 4.1).

      10.6 Guarantee, dated as of January 27, 2006, by Morgan Stanley
          (included as Exhibit T to Exhibit 4.1).

      10.7 Subservicing Agreement, dated as of January 1, 2006, between
           JPMorgan Chase Bank, National Association and Chase Home
           Finance LLC.

      31   Section 302 Certification.

      33.1 HomEq Servicing Corporation's Annual Report on Assessment of
           Compliance for Year End December 31, 2006.

      33.2 Trustee's Annual Report on Assessment of Compliance for Year
           End December 31, 2006.

      34.1 Attestation Report on Assessment of Compliance with Servicing
           Criteria for HomEq Servicing Corporation's Report (Exhibit 33.1)
           for Year End December 31, 2006.

      34.2 Attestation Report on Assessment of Compliance with Servicing
           Criteria for Trustee's Report (Exhibit 33.2) for Year End
           December 31, 2006.

      35.1 HomEq Servicing Corporation's Annual Statement of Compliance for
           Year End December 31, 2006.