CAPCO AMERICA SECURITIZATION CORP
8-K, 1998-10-29
ASSET-BACKED SECURITIES
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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                       Securities and Exchange Act of 1934


Date of Report: October 29, 1998
(Date of earliest event reported)


                    CAPCO America Securitization Corporation
             (formerly known as Nomura Asset Securities Corporation)
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


     Delaware                      33-48481-06              13-3672336
- --------------------------------------------------------------------------------
(State or Other                    (Commission              (I.R.S. Employer
Jurisdiction of                    File Number)             Identification No.)
Incorporation


        Two World Financial Center, Building B, New York, New York 10281
- --------------------------------------------------------------------------------
                      Address of Principal Executive Office


       Registrant's telephone number, including area code: (212) 667-9300


<PAGE>


Item 5.   Other Events.

Recent Developments

     Following losses experienced by NACC's  subsidiary,  The Capital Company of
America LLC ("CCA") and Nomura Holding America Inc. ("NHA") (NACC's parent), the
Board of  Directors  (the "NSC  Board") of the  ultimate  parent of all of these
companies, Nomura Securities Co., Ltd. ("NSC"), on September 21, 1998 authorized
NSC to provide additional  capital to NHA (which, in turn,  authorized a capital
contribution to CCA) designed to substantially  restore the total capitalization
(shareholder's  equity plus subordinated debt) of NHA and CCA to the levels that
existed on April 1, 1998 (that is,  approximately  $843 million of  subordinated
debt and common shareholder's  equity) in the case of NHA, and to the level that
existed  on June 29,  1998  (that  is,  approximately  $500  million  of  common
shareholder's equity) in the case of CCA.

     As of September  25, 1998,  and as authorized by the NSC Board as described
above, NSC made an equity investment in NHA of approximately  $380 million,  and
acquired  (through  Nomura Global Funding plc)  subordinated  debt of NHA in the
amount of  approximately  $250 million.  Accordingly,  NHA on or about that time
received a total of approximately  $628 million in cash from or at the direction
of NSC and wired  approximately  $214  million  of that  amount to CCA as equity
capital.  Although  the  September  25, 1998  investment  in CCA was intended to
restore CCA's shareholder's equity to it's June 1998 level, a September 28, 1998
mark-to-market  estimate of the value of CCA's  assets  indicated  that the $214
million  contributed  to CCA was  insufficient  (by  approximately  $150 to $200
million)  to  restore  CCA's  capitalization  to that  level.  NHA  subsequently
contributed  additional  equity of another $214  million to CCA,  based on CCA's
mark-to-market  losses then estimated,  sufficient to restore CCA's  shareholder
equity to  approximately  $500 million as of September  30, 1998. On October 22,
1998,  NSC reported  that its  consolidated  after-tax  losses for the six-month
period  ending  September  30, 1998 was  $1,504,000,000  and NHA reported it had
incurred a pre-tax loss of  $1,160,000,000  for the same period.  Following  the
report of those losses,  NSC made an additional  equity investment in NHA in the
amount of $1,200,000,000.

     There  can be no  assurance  that  either  CCA or NHA will  not  experience
further losses,  that NSC will provide additional  capitalization to NHA or that
NHA will  contribute  capital to CCA beyond  what is  currently  authorized.  In
addition,  current market  uncertainty and volatility have had, and may continue
to have, further  significant  adverse impact on the financial  condition of CCA
and NHA.

     In another  development,  Ethan Penner,  who was appointed  Chief Executive
Officer and  President of CCA at its  formation on June 29, 1998,  resigned that
office and was  appointed  Vice  Chairman  of the Board of  Directors  of CCA on
August 14, 1998. Mr. Penner  resigned as Vice Chairman of the Board of Directors
on September 16, 1998. Also,  William Wraith, IV, the co-chief executive officer
and  co-president  of NHA and the chairman of the Board of Directors of NSI, and
Mark  McGauley,  the chief  operating  officer of NHA,  have resigned from those
positions and as members of the CCA Board of Managers.

     In another development,  CRIIMI MAE Inc., the parent of CRIIMI MAE Services
Limited  Partnership  (the  "Special   Servicer"),   filed  for  bankruptcy  law
protection on October 5, 1998 under Chapter 11 of the U.S. Bankruptcy Code. As a
result of that filing,  Standard & Poor's Rating  Services  ("S&P")  removed the
Special  Servicer  from  its  approved  servicer  list  as  a  commercial  asset
manager/special   servicer.  Fitch  IBCA,  Inc.  ("Fitch")  placed  the  Special
Servicer's   rating  of  "Above   Average"  on  "Rating   Alert"  with  negative
implications,  stating that special servicing functions could be affected by the
loss of personnel resulting from bankruptcy-related  disruptions. With regard to
the ratings on the Series 1998-D6 Certificates (the  "Certificates"),  Fitch and
Moody's Investors Service,  Inc. each affirmed its ratings for the Certificates.
S&P stated that the developments have no immediate impact on the ratings for the
Certificates. Duff & Phelps Credit Rating Co. ("DCR") placed the ratings for the
Certificates on "Ratings  Watch-Down."  DCR has also reported that a new special
servicer will be appointed as a result of a determination by the trustee for the
Certificates  that a special  servicer event of default has occurred.  Under the
terms of the  Pooling  and  Servicing  Agreement,  an  affiliate  of the Special
Servicer, as holder of the most subordinate Class of Certificates, has the right
to appoint the successor special servicer.  In addition, on October 7, 1998, S&P
lowered  its  subordinated  debt rating on AMRESCO  Inc.,  the parent of AMRESCO
Services,  L.P.  (the  "Servicer"),   from  "B"  to  "CCC+"  and  its  long-term
counterparty  credit  rating  from  "BB-"  to "B." As a result  of these  rating
downgrades,  S&P revised its  commercial  loan servicer  rating for the Servicer
from  "Strong" to  "Average."  The Servicer  remains on S&P's  approved  list of
servicers.
<PAGE>


     Pursuant to the  requirements of the Securities Act of 1934, the Registrant
has duly  caused  this  report to be signed on behalf of the  Registrant  by the
undersigned thereunto duly authorized.


                                        CAPCO AMERICA SECURITIZATION CORPORATION


                                        By:           /s/ Perry Gershon
                                           ------------------------------------
                                                 Name:    Perry Gershon
                                                 Title:   Managing Director

Date:  October 29, 1998




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