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|Morgan Stanley ABS Capital I Inc. Series 2004-SD2
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|2004 Annual Statement                            
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | DISTRIBUTION IN DOLLARS |  |                |  |           |  | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  | ENDING BALANCE | 
|PERIOD                                            |         | CLASS     |               | CUSIP |               |  | INTEREST                |  |                |  | PRINCIPAL |  | 
|200406                                            | A       | 61744CDZ6 | $176,371.31   |       | $5,362,903.45 |  | $185,847,096.55         | 
|200407                                            | A       | 61744CDZ6 | $280,061.25   |       | $5,702,525.74 |  | $180,144,570.81         | 
|200408                                            | A       | 61744CDZ6 | $285,228.90   |       | $8,022,986.81 |  | $172,121,584.00         | 
|200409                                            | A       | 61744CDZ6 | $325,811.82   |       | $4,630,149.66 |  | $167,491,434.34         | 
|200410                                            | A       | 61744CDZ6 | $298,320.85   |       | $6,086,491.96 |  | $161,404,942.38         | 
|200411                                            | A       | 61744CDZ6 | $341,819.80   |       | $5,337,430.35 |  | $156,067,512.03         | 
|200412                                            | A       | 61744CDZ6 | $353,449.56   |       | $3,813,623.77 |  | $152,253,888.26         | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $2,061,063.49           |  | $38,956,111.74 |  |           |  | 
|200406                                            | B-1     | 61744CEC6 | $16,386.26    |       | $0.00         |  | $7,332,000.00           | 
|200407                                            | B-1     | 61744CEC6 | $25,254.67    |       | $0.00         |  | $7,332,000.00           | 
|200408                                            | B-1     | 61744CEC6 | $25,356.50    |       | $0.00         |  | $7,332,000.00           | 
|200409                                            | B-1     | 61744CEC6 | $29,001.12    |       | $0.00         |  | $7,332,000.00           | 
|200410                                            | B-1     | 61744CEC6 | $25,890.11    |       | $0.00         |  | $7,332,000.00           | 
|200411                                            | B-1     | 61744CEC6 | $30,191.55    |       | $0.00         |  | $7,332,000.00           | 
|200412                                            | B-1     | 61744CEC6 | $30,810.69    |       | $0.00         |  | $7,332,000.00           | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $182,890.90             |  | $0.00          |  |           |  | 
|200406                                            | B-2     | 61744CED4 | $5,307.48     |       | $0.00         |  | $2,257,000.00           | 
|200407                                            | B-2     | 61744CED4 | $8,162.82     |       | $0.00         |  | $2,257,000.00           | 
|200408                                            | B-2     | 61744CED4 | $8,181.63     |       | $0.00         |  | $2,257,000.00           | 
|200409                                            | B-2     | 61744CED4 | $9,341.16     |       | $0.00         |  | $2,257,000.00           | 
|200410                                            | B-2     | 61744CED4 | $8,320.81     |       | $0.00         |  | $2,257,000.00           | 
|200411                                            | B-2     | 61744CED4 | $9,695.07     |       | $0.00         |  | $2,257,000.00           | 
|200412                                            | B-2     | 61744CED4 | $9,873.12     |       | $0.00         |  | $2,257,000.00           | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $58,882.09              |  | $0.00          |  |           |  | 
|200406                                            | M-1     | 61744CEA0 | $10,370.90    |       | $0.00         |  | $10,152,000.00          | 
|200407                                            | M-1     | 61744CEA0 | $16,784.64    |       | $0.00         |  | $10,152,000.00          | 
|200408                                            | M-1     | 61744CEA0 | $17,512.20    |       | $0.00         |  | $10,152,000.00          | 
|200409                                            | M-1     | 61744CEA0 | $20,798.91    |       | $0.00         |  | $10,152,000.00          | 
|200410                                            | M-1     | 61744CEA0 | $19,424.16    |       | $0.00         |  | $10,152,000.00          | 
|200411                                            | M-1     | 61744CEA0 | $23,033.76    |       | $0.00         |  | $10,152,000.00          | 
|200412                                            | M-1     | 61744CEA0 | $24,477.60    |       | $0.00         |  | $10,152,000.00          | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $132,402.17             |  | $0.00          |  |           |  | 
|200406                                            | M-2     | 61744CEB8 | $13,589.21    |       | $0.00         |  | $9,025,000.00           | 
|200407                                            | M-2     | 61744CEB8 | $21,371.70    |       | $0.00         |  | $9,025,000.00           | 
|200408                                            | M-2     | 61744CEB8 | $21,810.42    |       | $0.00         |  | $9,025,000.00           | 
|200409                                            | M-2     | 61744CEB8 | $25,356.49    |       | $0.00         |  | $9,025,000.00           | 
|200410                                            | M-2     | 61744CEB8 | $23,093.97    |       | $0.00         |  | $9,025,000.00           | 
|200411                                            | M-2     | 61744CEB8 | $27,135.17    |       | $0.00         |  | $9,025,000.00           | 
|200412                                            | M-2     | 61744CEB8 | $28,210.65    |       | $0.00         |  | $9,025,000.00           | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $160,567.61             |  | $0.00          |  |           |  | 
|200406                                            | P       | MS04S2102 | $43,987.13    |       | $0.00         |  | $100.00                 | 
|200407                                            | P       | MS04S2102 | $36,475.36    |       | $0.00         |  | $100.00                 | 
|200408                                            | P       | MS04S2102 | $108,985.15   |       | $0.00         |  | $100.00                 | 
|200409                                            | P       | MS04S2102 | $64,418.92    |       | $0.00         |  | $100.00                 | 
|200410                                            | P       | MS04S2102 | $62,687.30    |       | $0.00         |  | $100.00                 | 
|200411                                            | P       | MS04S2102 | $29,211.44    |       | $0.00         |  | $100.00                 | 
|200412                                            | P       | MS04S2102 | $29,083.98    |       | $0.00         |  | $100.00                 | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $374,849.28             |  | $0.00          |  |           |  | 
|200406                                            | R       | MS04S2103 | $0.00         |       | $0.00         |  | $0.00                   | 
|200407                                            | R       | MS04S2103 | $0.00         |       | $0.00         |  | $0.00                   | 
|200408                                            | R       | MS04S2103 | $0.00         |       | $0.00         |  | $0.00                   | 
|200409                                            | R       | MS04S2103 | $0.00         |       | $0.00         |  | $0.00                   | 
|200410                                            | R       | MS04S2103 | $0.00         |       | $0.00         |  | $0.00                   | 
|200411                                            | R       | MS04S2103 | $0.00         |       | $0.00         |  | $0.00                   | 
|200412                                            | R       | MS04S2103 | $0.00         |       | $0.00         |  | $0.00                   | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $0.00                   |  | $0.00          |  |           |  | 
|200406                                            | REMIC I | MS04S2201 | $1,224,160.12 |       | $5,362,903.45 |  | $220,253,602.07         | 
|200407                                            | REMIC I | MS04S2201 | $1,187,894.04 |       | $5,702,525.74 |  | $214,551,076.33         | 
|200408                                            | REMIC I | MS04S2201 | $1,226,675.98 |       | $8,022,986.81 |  | $206,528,089.52         | 
|200409                                            | REMIC I | MS04S2201 | $1,135,699.96 |       | $4,630,149.66 |  | $201,897,939.86         | 
|200410                                            | REMIC I | MS04S2201 | $1,110,198.18 |       | $6,086,491.96 |  | $195,811,447.90         | 
|200411                                            | REMIC I | MS04S2201 | $1,041,724.91 |       | $5,337,430.35 |  | $190,474,017.55         | 
|200412                                            | REMIC I | MS04S2201 | $1,012,434.02 |       | $3,813,623.77 |  | $186,660,393.78         | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $7,938,787.21           |  | $38,956,111.74 |  |           |  | 
|200406                                            | X       | MS04S2101 | $957,863.26   |       | $0.00         |  | $5,640,405.52           | 
|200407                                            | X       | MS04S2101 | $799,783.60   |       | $0.00         |  | $5,640,405.52           | 
|200408                                            | X       | MS04S2101 | $759,601.18   |       | $0.00         |  | $5,640,405.52           | 
|200409                                            | X       | MS04S2101 | $660,971.54   |       | $0.00         |  | $5,640,405.52           | 
|200410                                            | X       | MS04S2101 | $672,460.98   |       | $0.00         |  | $5,640,405.52           | 
|200411                                            | X       | MS04S2101 | $486,833.54   |       | $0.00         |  | $5,640,405.52           | 
|200412                                            | X       | MS04S2101 | $536,528.42   |       | $0.00         |  | $5,640,405.52           | 
|                                                  |         |           |               |       |               |  |                         |  |                |  |           |  |  |  |                | 
|                                                  |         |           |               |       |               |  | $4,874,042.52           |  | $0.00          |  |           |  | 
|                                                  |         |           |               |       |               |  | $15,783,485.27          |  | $77,912,223.48 |  |           |  |