

                           SECURITIES AND EXCHANGE COMMISSION
                                 Washington, D.C.  20549


                                        FORM 8-K


                     Current Report Pursuant To Section 13 or 15(d) of
                            the Securities Exchange Act of 1934

           Date of Report (Date of earliest event reported):  December 26, 2003


                             MORGAN STANLEY CAPITAL I INC.
                (as Depositor, Chase Manhattan Mortgage Corporation
                as Servicer, Wells Fargo Home Mortgage Inc as Servicer
                and Responsible Party, Accredited Home Lenders, Inc
                   as Responsible Party and Deutsche Bank National
                             Trust Company, as Trustee).


                  MORGAN STANLEY ABS CAPITAL I INC TRUST 2003-HE 2
              (Exact name of Registrant as specified in its Charter)


                                         DELAWARE
                     (State or Other Jurisdiction of Incorporation)

               333-104046-10                          13-3939229
          (Commission File Number)        (I.R.S. Employer Identification No.)


           1585 BROADWAY, 2ND FLOOR
           NEW YORK, NEW YORK                             10036
          (Address of principal executive offices)     (Zip Code)


          Registrant's Telephone Number, Including Area Code:  (212) 761-4000



     Item 5.  Other Events

     Attached hereto is a copy of the Monthly Remittance Statements to the
     Certificateholders which was derived from the monthly information
     submitted by the Master Servicer of the Trust to the Trustee.


     Item 7.  Financial Statement and Exhibits

     Exhibits:  (as noted in Item 5 above)

     Monthly Remittance Statement to the Certificateholders dated as of
     December 26, 2003.



                                     SIGNATURE


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


                                  Deutsche Bank National Trust Company,
                                  not in its individual capacity, but solely
                                  as a duly authorized agent of the Registrant
                                  pursuant to the Pooling and Servicing
                                  Agreement, dated as of June 1,2003.

          Date:  Jan 02, 2004               By:  /s/  Katherine M. Wannenmacher
                                            Katherine M. Wannenmacher
                                            Vice President

                                   EXHIBIT INDEX

          DOCUMENT

          Monthly Remittance Statement to the Certificateholders
          dated as of December 26, 2003.


	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates


	December 26, 2003 Distribution


	Contents



			TABLE OF CONTENTS

								Page

			1.	Contents				1
			2.	Certificate Payment Report				2
			3.	Collection Account Report				4
			4.	Credit Enhancement Report				7
			5.	Collateral Report				8
			6.	Delinquency Report				11
			7.	REO Report				14
			8.	Foreclosure Report				15
			9.	Prepayment Report				16
			10.	Prepayment Detail Report				19
			11.	Realized Loss Report				21
			12.	Realized Loss Detail Report				24
			13.	Triggers, Adj. Rate Cert. and Miscellaneous Report				25




				Total Number of Pages				25



			CONTACTS

				Administrator: Jeremy Conyers
				Direct Phone Number: (714)247-6274
				Address: Deutsche Bank
				1761 E. St. Andrew Place, Santa Ana, CA 92705

				Web Site: https://www.corporatetrust.db.com/invr
				Factor Information: (800) 735-7777
				Main Phone Number: (714) 247-6000



ISSUANCE INFORMATION

	Seller:		Morgan Stanley					Cut-Off Date: August 1, 2003
	Certificate Insurer(s):							Closing Date: August 26, 2003
								First Payment Date: September 25, 2003
	Servicer(s):		Chase Manhattan Mortgage Master Servicer
			Wells Fargo Master Servicer

								Distribution Date: December 26, 2003
	Underwriter(s):		Morgan Stanley Dean Witter					Record Date: December 24, 2003
								November 28, 2003






						Page 1 of 25					© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates
	REMIC II Series 2003-HE2
	Certificate Payment Report for December 26, 2003 Distribution


	Distribution in Dollars - Current Period
					Prior						Current
	Class	Original			Principal			Total	Realized	Deferred	Principal
Class	Type	Face Value			Balance	Interest	Principal	Distribution	Losses	Interest	Balance
					(1)	(2)	(3)	(4)=(2)+(3)	(5)	(6)	(7)=(1)-(3)-(5)+(6)

A-1	FLT	299,599,000.00			283,649,947.83	375,846.03	7,932,083.34	8,307,929.37	-	-	275,717,864.49
A-2	FLT	205,944,000.00			198,826,868.84	249,755.54	3,657,021.19	3,906,776.73	-	-	195,169,847.65
M-1	MEZ, FLT	37,447,000.00			37,447,000.00	57,035.16	-	57,035.16	-	-	37,447,000.00
M-2	MEZ, FLT	34,327,000.00			34,327,000.00	81,842.48	-	81,842.48	-	-	34,327,000.00
M-3	MEZ, FLT	9,362,000.00			9,362,000.00	25,142.50	-	25,142.50	-	-	9,362,000.00
B-1	SUB, FLT	9,362,000.00			9,362,000.00	36,025.82	-	36,025.82	-	-	9,362,000.00
B-2	SUB, FLT	9,362,000.00			9,362,000.00	40,459.77	-	40,459.77	-	-	9,362,000.00
B-3	SUB, FLT	9,362,000.00			9,362,000.00	41,265.94	-	41,265.94	-	-	9,362,000.00
X	SUB	9,362,306.40			9,361,909.60	2,826,038.83	-	2,826,038.83	-	-	9,361,909.60
UT-R	R	-			-	-	-	-	-	-	-
P	EXE	-			-	262,348.58	-	262,348.58	-	-	-


Total		624,127,306.40			601,060,726.27	3,995,760.65	11,589,104.53	15,584,865.18	-	-	589,471,621.74


	Interest Accrual Detail				Current Period Factor Information per $1,000 of Original Face
						Orig. Principal	Prior				Current
	Period	Period				(with Notional)	Principal			Total	Principal
Class	Starting	Ending		Method	Cusip	Balance	Balance	Interest	Principal	Distribution	Balance
							(1)	(2)	(3)	(4)=(2)+(3)	(5)

A-1	11/25/03	12/25/03		A-Act/360	61746RCY5	299,599,000.00	946.765336	1.254497	26.475667	27.730164	920.289669
A-2	11/25/03	12/25/03		A-Act/360	61746RCZ2	205,944,000.00	965.441425	1.212735	17.757357	18.970093	947.684068
M-1	11/25/03	12/25/03		A-Act/360	61746RDA6	37,447,000.00	1,000.000000	1.523090	-	1.523090	1,000.000000
M-2	11/25/03	12/25/03		A-Act/360	61746RDB4	34,327,000.00	1,000.000000	2.384201	-	2.384201	1,000.000000
M-3	11/25/03	12/25/03		A-Act/360	61746RDC2	9,362,000.00	1,000.000000	2.685591	-	2.685591	1,000.000000
B-1	11/25/03	12/25/03		A-Act/360	61746RDD0	9,362,000.00	1,000.000000	3.848090	-	3.848090	1,000.000000
B-2	11/25/03	12/25/03		A-Act/360	61746RDE8	9,362,000.00	1,000.000000	4.321702	-	4.321702	1,000.000000
B-3	11/25/03	12/25/03		A-Act/360	61746RDF5	9,362,000.00	1,000.000000	4.407812	-	4.407812	1,000.000000
X	11/25/03	12/25/03		A-Act/360		9,362,306.40	999.957617	301.852846	-	301.852846	999.957617
UT-R	11/25/03	12/25/03		-		-	-	-	-	-	-
P	11/25/03	12/25/03		-		-	-	-	-	-	-


							Page 2 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates
	REMIC II Series 2003-HE2
	Certificate Payment Report for December 26, 2003 Distribution


	Distribution in Dollars - to Date
											Current
	Original				Unscheduled	Scheduled	Total	Total	Realized	Deferred	Principal
Class	Face Value		Interest		Principal	Principal	Principal	Distribution	Losses	Interest	Balance
	(1)		(2)		(3)	(4)	(5)=(3)+(4)	(6)=(2)+(5)	(7)	(8)	(9)=(1)-(5)-(7)+(8)

A-1	299,599,000.00		1,523,455.70		22,541,185.35	1,339,950.16	23,881,135.51	25,404,591.21	-	-	275,717,864.49
A-2	205,944,000.00		1,000,352.21		10,156,239.99	617,912.36	10,774,152.35	11,774,504.56	-	-	195,169,847.65
M-1	37,447,000.00		224,267.22		0.00	-	-	224,267.22	-	-	37,447,000.00
M-2	34,327,000.00		321,912.17		-	-	-	321,912.17	-	-	34,327,000.00
M-3	9,362,000.00		98,899.46		-	-	-	98,899.46	-	-	9,362,000.00
B-1	9,362,000.00		141,730.60		-	-	-	141,730.60	-	-	9,362,000.00
B-2	9,362,000.00		159,180.33		-	-	-	159,180.33	-	-	9,362,000.00
B-3	9,362,000.00		162,353.01		-	-	-	162,353.01	-	-	9,362,000.00
X	9,362,306.40		11,646,637.78		363.99	32.81	396.80	11,647,034.58	-	-	9,361,909.60
UT-R	-		-		-	-	-	-	-	-	-
P	-		787,450.26		-	-	-	787,450.26	-	-	-


Total	624,127,306.40		16,066,238.74		32,697,789.34	1,957,895.32	34,655,684.66	50,721,923.40	-	-	589,471,621.74


	Interest Detail
	Pass-	Prior Principal				Non-	Prior	Unscheduled		Paid or	Current
	Through	(with Notional)			Accrued	Supported	Unpaid	Interest	Optimal	Deferred	Unpaid
Class	Rate	Balance			Interest	Interest SF	Interest	Adjustments	Interest	Interest	Interest
					(1)	(2)	(3)	(4)	(5)=(1)-(2)+(3)+(4)	(6)	(7)=(5)-(6)

A-1	1.53875%	283,649,947.83			375,846.03	-	-	-	375,846.03	375,846.03	-
A-2	1.45875%	198,826,868.84			249,755.54	-	-	-	249,755.54	249,755.54	-
M-1	1.76875%	37,447,000.00			57,035.16	-	-	-	57,035.16	57,035.16	-
M-2	2.76875%	34,327,000.00			81,842.48	-	-	-	81,842.48	81,842.48	-
M-3	3.11875%	9,362,000.00			25,142.50	-	-	-	25,142.50	25,142.50	-
B-1	4.46875%	9,362,000.00			36,025.82	-	-	-	36,025.82	36,025.82	-
B-2	5.01875%	9,362,000.00			40,459.77	-	-	-	40,459.77	40,459.77	-
B-3	5.11875%	9,362,000.00			41,265.94	-	-	-	41,265.94	41,265.94	-
X	5.64210%	9,361,909.60			2,826,038.83	-	-	-	2,826,038.83	2,826,038.83	-
UT-R		-			-	-	-	-	-	-	-
P		-			262,348.58	-	-	-	262,348.58	262,348.58	-


Total		601,060,726.27			3,995,760.65	-	-	-	3,995,760.65	3,995,760.65	-


							Page 3 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Collection Account Report for December 26, 2003 Distribution


	Collection Account Report


SUMMARY						GROUP 2	GROUP 1	TOTAL

	Principal Collections					3,657,021.19	7,932,083.34	11,589,104.53
	Principal Other Accounts					0.00	0.00	0.00
	TOTAL NET PRINCIPAL					3,657,021.19	7,932,083.34	11,589,104.53

	Interest Collections					1,531,239.21	2,202,172.86	3,733,412.07
	Interest Withdrawals					0.00	0.00	0.00
	Interest Other Accounts					0.00	0.00	0.00
	Interest Fees					(12,922.88)	(21,121.29)	(34,044.17)
	TOTAL NET INTEREST					1,518,316.33	2,181,051.57	3,699,367.90

	TOTAL PRINCIPAL & INTEREST DISTRIBUTABLE					5,175,337.52	10,113,134.91	15,288,472.43

	Prepayment Penalties Collected							262,348.58

	TOTAL AVAILABLE FUNDS FOR DISTRIBUTION							15,584,865.18


PRINCIPAL - COLLECTIONS						GROUP 2	GROUP 1	TOTAL

	Scheduled Principal Received					213,845.21	271,092.33	484,937.54
	Prepayments In Full					3,428,717.71	7,643,472.71	11,072,190.42
	Curtailments					14,458.27	17,518.30	31,976.57
	Liquidations					0.00	0.00	0.00
	Insurance Principal					0.00	0.00	0.00
	Repurchased Principal Amounts					0.00	0.00	0.00
	Other Principal					0.00	0.00	0.00
	Total Realized Loss Of Principal					0.00	0.00	0.00
	Delinquent Principal					(191,218.44)	(238,195.24)	(429,413.68)
	Advanced Principal					191,218.44	238,195.24	429,413.68

	TOTAL PRINCIPAL COLLECTED					3,657,021.19	7,932,083.34	11,589,104.53


				Page 4 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Collection Account Report for December 26, 2003 Distribution


	Collection Account Report


PRINCIPAL - WITHDRAWALS						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


PRINCIPAL - OTHER ACCOUNTS						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


INTEREST - COLLECTIONS						GROUP 2	GROUP 1	TOTAL

	Scheduled Interest					1,635,694.82	2,351,765.58	3,987,460.40
	Liquidation Interest					0.00	0.00	0.00
	Repurchased Interest					0.00	0.00	0.00
	Insurance Interest					0.00	0.00	0.00
	Other Interest					0.00	0.00	0.00
	Relief Act Interest Shortfalls					0.00	0.00	0.00
	Net Prepayment Interest Shortfalls					0.00	0.00	0.00
	Delinquent Interest					(1,458,225.37)	(2,057,407.19)	(3,515,632.56)
	Interest Advanced					1,366,692.64	1,928,935.76	3,295,628.40

	TOTAL INTEREST COLLECTED					1,531,239.21	2,202,172.86	3,733,412.07


				Page 5 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Collection Account Report for December 26, 2003 Distribution


	Collection Account Report


INTEREST - WITHDRAWALS						GROUP 2	GROUP 1	TOTAL

	Trust Fund Expenses							0.00
	Nonrecoverable Advances							0.00
	Reimbursements to Master Servicer							0.00

	TOTAL INTEREST WITHDRAWALS							0.00


INTEREST - OTHER ACCOUNTS						GROUP 2	GROUP 1	TOTAL


	TOTAL INTEREST OTHER ACCOUNTS					0.00	0.00	0.00


INTEREST - FEES						GROUP 2	GROUP 1	TOTAL

	Current Servicing Fees					11,440.07	18,997.74	30,437.81
	Trustee Fees					1,482.81	2,123.55	3,606.36



	TOTAL INTEREST OTHER FEES					12,922.88	21,121.29	34,044.17


				Page 6 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Credit Enhancement Report for December 26, 2003 Distribution


	Credit Enhancement Report


ACCOUNTS						GROUP 2	GROUP 1	TOTAL

	Excess Reserve Fund Balance (Ending)							0.00


INSURANCE						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


STRUCTURAL FEATURES						GROUP 2	GROUP 1	TOTAL

	Beginning Subordinated Amount							9,361,909.60
	Ending Subordinated Amount							9,361,909.60
	Specified Subordinated Amount							9,361,909.60


	Senior Enhancement Percentage							20.12%


				Page 7 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Collateral Report for December 26, 2003 Distribution


	Collateral Report


COLLATERAL						GROUP 2	GROUP 1	TOTAL
	Loan Count:
	*Original*					1903	2647	4550
	Prior					1,848	2,555	4,403
	Prefunding					-	-	-
	Scheduled Paid Offs					-	-	-
	Full Voluntary Prepayments					(28)	(50)	(78)
	Repurchases					-	-	-
	Liquidations					-	-	-
	Current					1,820	2,505	4,325

	*Principal Balance:*
	Original					254,251,979.56	369,875,326.84	624,127,306.40
	Prior					247,134,722.93	353,926,003.34	601,060,726.27
	Prefunding					-	-	-
	Scheduled Principal					(213,845.21)	(271,092.33)	(484,937.54)
	Partial and Full Voluntary Prepayments					(3,443,175.98)	(7,660,991.01)	(11,104,166.99)
	Repurchases					-	-	-
	Liquidations					-	-	-
	Current					243,477,701.74	345,993,920.00	589,471,621.74

PREFUNDING						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


	Group 1
	Group 2
Current Prin Balance by Groups (in millions of dollars)					Total Current Principal Balance (in millions of dollars)


				Page 8 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Collateral Report for December 26, 2003 Distribution


	Collateral Report


CHARACTERISTICS						GROUP 2	GROUP 1	TOTAL

	Weighted Average Coupon Original					7.974910%	8.002537%	7.991282%
	Weighted Average Coupon Prior					7.955878%	7.985227%	7.973232%
	Weighted Average Coupon Current					7.942363%	7.973753%	7.960847%
	Weighted Average Months to Maturity Original					336	349	344
	Weighted Average Months to Maturity Prior					333	347	341
	Weighted Average Months to Maturity Current					332	346	340
	Weighted Avg Remaining Amortization Term Original					345	352	349
	Weighted Avg Remaining Amortization Term Prior					343	350	347
	Weighted Avg Remaining Amortization Term Current					342	349	346
	Weighted Average Seasoning Original					4.12	4.20	4.17
	Weighted Average Seasoning Prior					6.10	6.18	6.15
	Weighted Average Seasoning Current					7.08	7.18	7.14

Note: Original information refers to deal issue.


	Group 1
	Group 2
WAC by Groups					Total WAC


WARAT by Groups					Total WARAT


Note: Dates correspond to distribution dates.
				Page 9 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Collateral Report for December 26, 2003 Distribution


	Collateral Report


ARM CHARACTERISTICS						GROUP 2	GROUP 1	TOTAL

	Weighted Average Margin Original					3.525%	5.394%
	Weighted Average Margin Prior					3.483%	5.372%
	Weighted Average Margin Current					3.468%	5.362%
	Weighted Average Max Rate Original					7.911%	12.119%
	Weighted Average Max Rate Prior					7.827%	12.085%
	Weighted Average Max Rate Current					7.797%	12.073%
	Weighted Average Min Rate Original					3.914%	5.947%
	Weighted Average Min Rate Prior					3.870%	5.931%
	Weighted Average Min Rate Current					3.858%	5.924%
	Weighted Average Cap Up Original					0.604%	0.903%
	Weighted Average Cap Up Prior					0.599%	0.903%
	Weighted Average Cap Up Current					0.598%	0.903%
	Weighted Average Cap Down Original					0.604%	0.903%
	Weighted Average Cap Down Prior					0.599%	0.903%
	Weighted Average Cap Down Current					0.598%	0.903%

Note: Original information refers to deal issue.

SERVICING FEES / ADVANCES						GROUP 2	GROUP 1	TOTAL

	Current Servicing Fees					11,440.07	18,997.74	30,437.81
	Delinquent Servicing Fees					91,532.72	128,471.42	220,004.14
	TOTAL SERVICING FEES					102,972.79	147,469.16	250,441.95

	Prepayment Interest Shortfall					8,918.43	17,473.66	26,392.09
	Compensating Interest					(8,918.43)	(17,473.66)	(26,392.09)
	Delinquent Servicing Fees					(91,532.72)	(128,471.42)	(220,004.14)

	COLLECTED SERVICING FEES					11,440.07	18,997.74	30,437.81


	Aggregate Advances with respect to this Distribution					1,557,911.08	2,167,131.00	3,725,042.08
	Current Nonrecoverable Advances					0.00	0.00	0.00
	Cumulative Nonrecoverable Advances					0.00	0.00	0.00


ADDITIONAL COLLATERAL INFORMATION						GROUP 2	GROUP 1	TOTAL

	Net Prepayment Interest Shortfall							0.00

	Net Monthly Excess Cash Flow							2,826,038.83


	Ending Pool Stated Principal Balance					243,477,701.74	345,993,920.00	589,471,621.74


				Page 10 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Delinquency Report for December 26, 2003 Distribution


	Delinquency Report - Total


				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			7,106,945.90	2,085,660.86	-	9,192,606.76
		% Balance			1.21%	0.35%	0.00%	1.56%
		# Loans			55	12	-	67
		% # Loans			1.27%	0.28%	0.00%	1.55%
FORECLOSURE		Balance		-	-	863,830.57	1,336,752.87	2,200,583.44
		% Balance		0.00%	0.00%	0.15%	0.23%	0.37%
		# Loans		-	-	10	13	23
		% # Loans		0.00%	0.00%	0.23%	0.30%	0.53%
BANKRUPTCY		Balance		1,731,195.48	119,468.28	-	451,568.71	2,302,232.47
		% Balance		0.29%	0.02%	0.00%	0.08%	0.39%
		# Loans		16	1	-	4	21
		% # Loans		0.37%	0.02%	0.00%	0.09%	0.49%
REO		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%

TOTAL		Balance		1,731,195.48	7,226,414.18	2,949,491.43	1,788,321.58	13,695,422.67
		% Balance		0.29%	1.23%	0.50%	0.30%	2.32%
		# Loans		16	56	22	17	111
		% # Loans		0.37%	1.29%	0.51%	0.39%	2.57%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent


Total Foreclosure					Total Bankruptcy and REO


Note: Dates correspond to distribution dates.
				Page 11 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Delinquency Report for December 26, 2003 Distribution


	Delinquency Report - Group 1 Group


				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			4,331,419.55	731,610.51	-	5,063,030.06
		% Balance			1.25%	0.21%	0.00%	1.46%
		# Loans			30	6	-	36
		% # Loans			1.20%	0.24%	0.00%	1.44%
FORECLOSURE		Balance		-	-	687,926.86	837,712.75	1,525,639.61
		% Balance		0.00%	0.00%	0.20%	0.24%	0.44%
		# Loans		-	-	8	7	15
		% # Loans		0.00%	0.00%	0.32%	0.28%	0.60%
BANKRUPTCY		Balance		945,121.30	119,468.28	-	272,619.24	1,337,208.82
		% Balance		0.27%	0.03%	0.00%	0.08%	0.39%
		# Loans		8	1	-	2	11
		% # Loans		0.32%	0.04%	0.00%	0.08%	0.44%
REO		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%

TOTAL		Balance		945,121.30	4,450,887.83	1,419,537.37	1,110,331.99	7,925,878.49
		% Balance		0.27%	1.29%	0.41%	0.32%	2.29%
		# Loans		8	31	14	9	62
		% # Loans		0.32%	1.24%	0.56%	0.36%	2.48%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent


Total Foreclosure					Total Bankruptcy and REO


Note: Dates correspond to distribution dates.
				Page 12 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Delinquency Report for December 26, 2003 Distribution


	Delinquency Report - Group 2 Group


				<1 PAYMENT	1 PAYMENT	2 PAYMENTS	3+ PAYMENTS	TOTAL
DELINQUENT		Balance			2,775,526.35	1,354,050.35	-	4,129,576.70
		% Balance			1.14%	0.56%	0.00%	1.70%
		# Loans			25	6	-	31
		% # Loans			1.37%	0.33%	0.00%	1.70%
FORECLOSURE		Balance		-	-	175,903.71	499,040.12	674,943.83
		% Balance		0.00%	0.00%	0.07%	0.20%	0.28%
		# Loans		-	-	2	6	8
		% # Loans		0.00%	0.00%	0.11%	0.33%	0.44%
BANKRUPTCY		Balance		786,074.18	-	-	178,949.47	965,023.65
		% Balance		0.32%	0.00%	0.00%	0.07%	0.40%
		# Loans		8	-	-	2	10
		% # Loans		0.44%	0.00%	0.00%	0.11%	0.55%
REO		Balance		-	-	-	-	-
		% Balance		0.00%	0.00%	0.00%	0.00%	0.00%
		# Loans		-	-	-	-	-
		% # Loans		0.00%	0.00%	0.00%	0.00%	0.00%

TOTAL		Balance		786,074.18	2,775,526.35	1,529,954.06	677,989.59	5,769,544.18
		% Balance		0.32%	1.14%	0.63%	0.28%	2.37%
		# Loans		8	25	8	8	49
		% # Loans		0.44%	1.37%	0.44%	0.44%	2.69%
Note: <1 Payment = 0-30days, 1 Payment = 31-60days, 2 Payments = 61-90days, 3+ Payments = 91+
								6 Months Moving Average
1 or 2 Payments Delinquent					3 or More Payments Delinquent


Total Foreclosure					Total Bankruptcy and REO


Note: Dates correspond to distribution dates.
				Page 13 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	REO Report for December 26, 2003 Distribution


	REO Report - Mortgage Loans that Become REO During Current Distribution


SUMMARY				LOAN GROUP

Total Loan Count = 0				Loan Group 1 = Group 1 Group; REO Book Value = 000.00
Total Original Principal Balance = 000.00				Loan Group 2 = Group 2 Group; REO Book Value = 000.00
Total Current Balance = 000.00
REO Book Value = 000.00

REO Book Value reported corresponds to total REO loans, including loans that become REO during current distribution.

Loan Number		Original	Stated		Current	State &
&		Principal	Principal	Paid to	Note	LTV at	Original	Origination
Loan Group		Balance	Balance	Date	Rate	Origination	Term	Date
SPACE INTENTIONALLY LEFT BLANK


				Page 14 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Foreclosure Report for December 26, 2003 Distribution


	Foreclosure Report - Mortgage Loans that Become Foreclosure During Current Distribution


SUMMARY				LOAN GROUP

Total Loan Count = 16				Loan Group 1 = Group 1 Group
Total Original Principal Balance = 1,644,378.00				Loan Group 2 = Group 2 Group
Total Current Balance = 1,634,381.22


Loan Number		Original	Stated		Current	State &
&		Principal	Principal	Paid to	Note	LTV at	Original	Origination
Loan Group		Balance	Balance	Date	Rate	Origination	Term	Date

122544794 1		55,000.00	54,641.93	Aug-01-03	10.375%	MI - 76.39%	360	Aug-30-02
126956002 1		161,000.00	160,073.77	Aug-01-03	8.375%	CO - 70.00%	360	Feb-04-03
127102804 1		60,750.00	60,484.37	Aug-01-03	11.875%	NE - 75.00%	360	Feb-21-03
127286896 1		76,800.00	76,483.36	Aug-01-03	10.375%	IL - 80.00%	360	Feb-24-03
127528164 1		45,500.00	45,300.99	Aug-01-03	9.125%	MI - 70.00%	360	Mar-06-03
127783249 1		156,000.00	155,005.56	Aug-01-03	7.250%	NE - 75.36%	360	Mar-26-03
127922664 1		44,838.00	44,629.33	Aug-01-03	9.500%	TX - 90.00%	360	Mar-28-03
127965853 1		91,600.00	91,307.55	Aug-01-03	10.625%	NM - 80.00%	360	Mar-17-03
126820091 2		63,750.00	63,507.49	Aug-01-03	10.375%	NC - 85.00%	360	Feb-06-03
128298908 2		114,750.00	112,396.22	Aug-01-03	9.875%	TX - 90.00%	180	Apr-02-03
5481643 3		110,400.00	110,037.63	Jul-01-03	9.150%	FL - 80.00%	360	Jun-04-03
5543738 3		80,100.00	79,815.50	Jul-01-03	8.700%	IN - 89.00%	360	May-28-03
5625130 3		256,000.00	254,864.79	Jul-01-03	7.600%	IL - 80.00%	360	May-13-03
5573378 4		208,000.00	207,001.29	Jul-01-03	7.990%	CA - 80.00%	360	May-06-03
304179897 4		50,000.00	49,815.00	Jul-01-03	8.500%	CO - 26.88%	360	May-07-03
304244479 4		69,890.00	69,016.44	Jul-01-03	7.750%	FL - 84.20%	240	May-05-03


				Page 15 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Prepayment Report for December 26, 2003 Distribution


	Prepayment Report - Voluntary Prepayments


VOLUNTARY PREPAYMENTS						GROUP 2	GROUP 1	TOTAL

	*Current*
	Number of Paid in Full Loans					28	50	78
	Number of Repurchased Loans					-	-	-
	Total Number of Loans Prepaid in Full					28	50	78

	Paid in Full Balance					3,428,717.71	7,643,472.71	11,072,190.42
	Repurchased Loans Balance					-	-	-
	Curtailments Amount					14,458.27	17,518.30	31,976.57
	Total Prepayment Amount					3,443,175.98	7,660,991.01	11,104,166.99

	*Cumulative*
	Number of Paid in Full Loans					83	142	225
	Number of Repurchased Loans					-	-	-
	Total Number of Loans Prepaid in Full					83	142	225

	Paid in Full Balance					9,865,384.59	22,687,288.62	32,552,673.21
	Repurchased Loans Balance					-	-	-
	Curtailments Amount					51,746.45	93,369.68	145,116.13
	Total Prepayment Amount					9,917,131.04	22,780,658.30	32,697,789.34

SPACE INTENTIONALLY LEFT BLANK


Total Prepayments by Groups (in thousands of dollars)					Total Prepayments (in thousands of dollars)


				Page 16 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Prepayment Report for December 26, 2003 Distribution


	Prepayment Report - Voluntary Prepayments


VOLUNTARY PREPAYMENT RATES						GROUP 2	GROUP 1	TOTAL

	SMM					1.39%	2.17%	1.85%
	3 Months Avg SMM					1.10%	1.76%	1.49%
	12 Months Avg SMM
	Avg SMM Since Cut-off					0.99%	1.58%	1.34%

	CPR					15.51%	23.11%	20.06%
	3 Months Avg CPR					12.47%	19.23%	16.52%
	12 Months Avg CPR
	Avg CPR Since Cut-off					11.28%	17.40%	14.94%

	PSA					1094.91%	1610.51%	1405.75%
	3 Months Avg PSA Approximation					1022.33%	1555.17%	1343.49%
	12 Months Avg PSA Approximation
	Avg PSA Since Cut-off Approximation					1006.38%	1529.24%	1321.36%



	Group 1
	Group 2


CPR by Groups					Total CPR


PSA by Groups					Total PSA


				Page 17 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Prepayment Report for December 26, 2003 Distribution


	Prepayment Report - Voluntary Prepayments

	Group 1
	Group 2

CPR Avg since Cut-Off by Groups					Total CPR Avg since Cut-Off


PSA Avg since Cut-Off by Groups					Total PSA Avg since Cut-Off


PREPAYMENT CALCULATION METHODOLOGY
Single Monthly Mortality (SMM): (Voluntary partial and full prepayments + Repurchases)/(Beg Principal Balance - Sched Principal)
Conditional Prepayment Rate (CPR): 1-((1-SMM)^12)
PSA Standard Prepayment Model: CPR/(0.02*min(30,WAS))
Average SMM over period between nth month and mth month (AvgSMMn,m): [(1-SMMn) * (1-SMMn+1) .......(1-SMMm)]^(1/months in period n,m)
Average CPR over period between the nth month and mth month (AvgCPRn,m): 1-((1-AvgSMMn,m)^12)
Average PSA Approximation over period between the nth month and mth month: AvgCPRn,m/(0.02*Avg WASn,m))
Average WASn,m: (min(30,WASn)+min(30,WASn+1)+.......+min(30,WASm)/(number of months in the period n,m)
Weighted Average Seasoning (WAS)

Note: Prepayment rates are calculated since deal issue date and include partial and full voluntary prepayments and repurchases.
Dates correspond to distribution dates.

				Page 18 of 25				© COPYRIGHT 2003 Deutsche Bank


	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Prepayment Detail Report for December 26, 2003 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution


SUMMARY						LOAN GROUP

Total Loan Count = 78						Loan Group 1 = Group 1 Group
Total Original Principal Balance = 11,121,037.00						Loan Group 2 = Group 2 Group
Total Prepayment Amount = 11,072,190.42


Loan Number			Original			Current	State &	Type Prepayment
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	&	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Original Term	Date

124955659 1			182,400.00	181,412.15	Nov-03-03	10.125%	MA - 80.00%	Paid Off - 360	Oct-24-02
126248145 1			137,675.00	137,189.71	Nov-03-03	10.250%	DC - 37.21%	Paid Off - 360	Feb-21-03
126442953 1			270,000.00	268,596.61	Nov-18-03	8.875%	IL - 67.50%	Paid Off - 360	Jan-31-03
126645951 1			46,420.00	46,290.25	Nov-07-03	11.250%	NC - 55.00%	Paid Off - 360	Feb-24-03
126706167 1			208,000.00	206,992.45	Nov-26-03	8.625%	CA - 51.36%	Paid Off - 360	Feb-07-03
126758127 1			127,500.00	127,070.71	Nov-28-03	10.375%	MN - 74.13%	Paid Off - 360	Feb-21-03
126992171 1			106,000.00	105,710.15	Nov-10-03	11.750%	OR - 83.46%	Paid Off - 360	Feb-14-03
127063212 1			137,140.00	136,190.20	Nov-17-03	10.500%	AZ - 63.79%	Paid Off - 360	Feb-18-03
127067445 1			272,000.00	270,821.72	Nov-20-03	8.500%	CT - 85.00%	Paid Off - 360	Mar-14-03
127103794 1			93,600.00	93,284.83	Nov-14-03	10.375%	VA - 80.00%	Paid Off - 360	Feb-25-03
127200632 1			150,000.00	149,471.04	Nov-19-03	9.500%	MN - 75.00%	Paid Off - 360	Mar-12-03
127430874 1			65,000.00	64,750.32	Nov-14-03	9.750%	MN - 57.02%	Paid Off - 360	Feb-21-03
127456408 1			166,400.00	165,497.15	Nov-28-03	7.375%	MA - 80.00%	Paid Off - 360	Mar-25-03
127632065 1			93,675.00	92,969.21	Nov-03-03	10.950%	MO - 75.00%	Paid Off - 360	Mar-10-03
127681138 1			165,750.00	165,289.06	Nov-19-03	10.625%	MA - 75.00%	Paid Off - 360	Mar-25-03
127684934 1			157,500.00	157,091.49	Nov-04-03	10.950%	FL - 75.00%	Paid Off - 360	Mar-17-03
127703817 1			188,300.00	187,420.03	Nov-18-03	8.375%	CA - 70.00%	Paid Off - 360	Mar-17-03
127728889 1			132,600.00	132,118.95	Nov-10-03	8.750%	TN - 79.88%	Paid Off - 360	Mar-28-03
127747012 1			249,000.00	248,180.63	Nov-10-03	10.125%	CO - 75.00%	Paid Off - 360	Mar-21-03
127759025 1			90,525.00	90,132.87	Nov-11-03	8.500%	MO - 85.00%	Paid Off - 360	Mar-14-03
127800076 1			60,000.00	59,837.56	Nov-21-03	10.750%	OH - 70.59%	Paid Off - 360	Mar-15-03
127846145 1			172,265.00	171,480.02	Nov-10-03	8.250%	OH - 90.00%	Paid Off - 360	Mar-24-03
127848398 1			52,000.00	51,870.11	Nov-03-03	11.125%	MO - 78.79%	Paid Off - 360	Mar-24-03
127884286 1			112,000.00	111,605.07	Nov-06-03	9.500%	IL - 89.60%	Paid Off - 360	Mar-26-03
127900256 1			100,800.00	100,372.87	Nov-06-03	8.625%	OH - 90.00%	Paid Off - 360	Mar-24-03
127991222 1			118,000.00	117,304.89	Nov-05-03	6.990%	MN - 50.00%	Paid Off - 360	Mar-21-03
128044682 1			31,570.00	31,484.45	Nov-28-03	10.750%	WI - 70.00%	Paid Off - 360	Mar-31-03
128356326 1			103,500.00	103,062.87	Nov-04-03	8.625%	VA - 94.95%	Paid Off - 360	Mar-28-03
128385911 1			90,000.00	89,519.60	Nov-25-03	7.625%	MN - 52.94%	Paid Off - 360	Mar-31-03
128390812 1			124,950.00	124,320.58	Nov-28-03	7.750%	IL - 85.00%	Paid Off - 360	Apr-02-03
305546 2			264,000.00	262,411.77	Nov-28-03	10.750%	ID - 80.00%	Paid Off - 360	Jul-03-02
123973653 2			70,800.00	70,636.68	Nov-06-03	12.125%	OH - 73.75%	Paid Off - 360	Feb-13-03
124599523 2			140,000.00	139,307.88	Nov-26-03	10.125%	NJ - 65.12%	Paid Off - 360	Nov-14-02
126670025 2			134,400.00	133,796.99	Nov-11-03	9.000%	SC - 80.00%	Paid Off - 360	Feb-18-03
126793918 2			34,000.00	33,869.37	Nov-21-03	9.750%	TX - 85.00%	Paid Off - 360	Feb-10-03
126948264 2			123,000.00	122,107.52	Nov-28-03	8.250%	PA - 73.65%	Paid Off - 360	Mar-27-03
126984491 2			90,100.00	89,520.25	Nov-04-03	9.950%	FL - 85.00%	Paid Off - 360	Feb-14-03
127270544 2			400,000.00	398,625.90	Nov-05-03	9.625%	OH - 94.99%	Paid Off - 360	Mar-28-03
127442234 2		FCL	120,700.00	120,316.75	Nov-28-03	10.000%	CT - 85.00%	Paid Off - 360	Mar-24-03
127568624 2			67,500.00	67,312.29	Nov-04-03	10.625%	MO - 75.00%	Paid Off - 360	Mar-11-03
127591931 2			150,000.00	149,510.97	Nov-24-03	9.875%	SC - 69.12%	Paid Off - 360	Mar-26-03
127614691 2			40,000.00	39,866.09	Nov-21-03	9.750%	ID - 32.00%	Paid Off - 360	Mar-18-03
127628899 2			128,800.00	128,441.84	Nov-20-03	10.625%	MN - 80.00%	Paid Off - 360	Mar-27-03
127730059 2			140,000.00	139,506.33	Nov-14-03	9.500%	NJ - 84.85%	Paid Off - 360	Mar-25-03

					Page 19 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Prepayment Detail Report for December 26, 2003 Distribution


	Prepayment Detail Report - Loans Prepaid in Full During Current Distribution



Loan Number			Original			Current	State &
&		Loan	Principal	Prepayment	Prepayment	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Amount	Date	Rate	Origination	Term	Date

127981447 2			102,000.00	101,262.67	Nov-04-03	7.375%	IL - 67.55%	Paid Off - 360	Mar-26-03
128074549 2			76,500.00	76,197.71	Nov-28-03	8.950%	KS - 85.00%	Paid Off - 180	Mar-26-03
128131844 2			113,750.00	113,147.85	Nov-13-03	7.500%	OH - 65.00%	Paid Off - 360	Mar-27-03
128275518 2			48,500.00	48,236.84	Nov-11-03	7.375%	MI - 64.67%	Paid Off - 360	Mar-28-03
128280146 2			41,500.00	40,572.62	Nov-06-03	8.950%	TX - 60.14%	Paid Off - 180	Mar-26-03
128455672 2			67,500.00	67,159.97	Nov-28-03	7.750%	AZ - 75.00%	Paid Off - 360	Mar-27-03
5223261 3			57,793.00	57,617.48	Dec-01-03	8.600%	PA - 84.99%	Paid Off - 360	May-22-03
5224861 3			189,600.00	188,688.23	Dec-01-03	7.200%	CA - 79.00%	Paid Off - 360	May-07-03
5229324 3			225,000.00	223,919.62	Dec-01-03	7.990%	MN - 77.05%	Paid Off - 360	Apr-01-03
5465893 3			96,000.00	95,781.76	Dec-01-03	9.950%	FL - 68.57%	Paid Off - 360	Jun-02-03
5472261 3			229,000.00	228,205.57	Dec-01-03	7.900%	CA - 84.81%	Paid Off - 360	May-21-03
5555000 3			212,400.00	211,663.16	Dec-01-03	7.900%	CO - 90.00%	Paid Off - 360	Jun-02-03
5568935 3			72,000.00	71,746.46	Dec-01-03	7.880%	AZ - 80.00%	Paid Off - 360	Jun-05-03
5577586 3			153,000.00	152,302.90	Dec-01-03	6.750%	CA - 85.00%	Paid Off - 360	May-16-03
5597625 3			320,000.00	319,046.54	Dec-01-03	8.650%	NH - 70.80%	Paid Off - 360	May-19-03
5642043 3			103,500.00	103,165.44	Dec-01-03	8.250%	CA - 90.00%	Paid Off - 360	Jun-03-03
5646391 3			102,500.00	100,840.65	Dec-01-03	6.850%	FL - 63.27%	Paid Off - 180	May-30-03
5648297 3			222,500.00	221,359.99	Dec-01-03	5.900%	CA - 68.57%	Paid Off - 360	Jun-03-03
5660688 3			138,750.00	138,202.71	Dec-01-03	7.400%	FL - 75.00%	Paid Off - 360	May-27-03
5660858 3			219,300.00	218,388.86	Dec-01-03	6.990%	CA - 85.00%	Paid Off - 360	Jun-03-03
5683440 3			175,000.00	174,293.54	Dec-01-03	7.600%	MD - 87.50%	Paid Off - 360	May-20-03
5711983 3			268,000.00	266,775.38	Dec-01-03	6.500%	CA - 80.00%	Paid Off - 360	May-20-03
5748968 3			193,500.00	193,072.42	Dec-01-03	9.000%	IL - 90.00%	Paid Off - 360	Jun-04-03
5793572 3			210,930.00	209,867.46	Dec-01-03	6.400%	CA - 79.00%	Paid Off - 360	May-30-03
5825334 3			283,500.00	282,324.41	Dec-01-03	7.000%	CA - 90.00%	Paid Off - 360	Jun-02-03
304082723 3			199,920.00	198,872.58	Dec-01-03	6.750%	PA - 80.00%	Paid Off - 360	Apr-30-03
5126851 4			150,000.00	149,413.61	Dec-01-03	7.300%	MA - 50.85%	Paid Off - 360	May-15-03
5215110 4			126,700.00	126,268.05	Dec-01-03	8.900%	IL - 70.00%	Paid Off - 360	Apr-21-03
5251559 4			121,125.00	120,660.96	Dec-01-03	9.100%	FL - 100.00%	Paid Off - 360	Apr-04-03
5279704 4			93,000.00	92,676.36	Dec-01-03	8.800%	NY - 27.35%	Paid Off - 360	May-08-03
5284546 4			71,250.00	70,947.50	Dec-01-03	7.850%	MO - 75.00%	Paid Off - 360	Apr-29-03
5311225 4			73,500.00	73,316.35	Dec-01-03	9.500%	FL - 75.00%	Paid Off - 360	May-22-03
5587468 4			132,549.00	132,303.07	Dec-01-03	10.900%	NY - 56.40%	Paid Off - 360	May-13-03
304179393 4			323,100.00	321,323.52	Dec-01-03	6.500%	CA - 90.00%	Paid Off - 360	Apr-24-03


					Page 20 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Realized Loss Report for December 26, 2003 Distribution


	Realized Loss Report - Collateral


COLLATERAL REALIZED LOSSES						GROUP 2	GROUP 1	TOTAL

	*Current*
	Number of Loans Liquidated					-	-	-
	Collateral Realized Loss/(Gain) Amount					-	-	-
	Net Liquidation Proceeds					-	-	-

	*Cumulative*
	Number of Loans Liquidated					-	-	-
	Collateral Realized Loss/(Gain) Amount					-	-	-
	Net Liquidation Proceeds					-	-	-

	Note: Collateral Realized Loss Amount may include adjustments to loans liquidated in prior periods.


	Applied Realized Loss Amount Current							0.00
	Applied Realized Loss Amount Aggregate							0.00
	Cumulative Loss Percentage							0.00%


	Group 1						3 Months Moving Average
	Group 2

Collateral Loss Severity Approximation by Groups					Collateral Loss Severity Approximation


				Page 21 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Realized Loss Report for December 26, 2003 Distribution


	Realized Loss Report - Collateral


DEFAULT SPEEDS						GROUP 2	GROUP 1	TOTAL

	MDR					0.00%	0.00%	0.00%
	3 Months Avg MDR					0.00%	0.00%	0.00%
	12 Months Avg MDR
	Avg MDR Since Cut-off					0.00%	0.00%	0.00%

	CDR					0.00%	0.00%	0.00%
	3 Months Avg CDR					0.00%	0.00%	0.00%
	12 Months Avg CDR
	Avg CDR Since Cut-off					0.00%	0.00%	0.00%

	SDA					0.00%	0.00%	0.00%
	3 Months Avg SDA Approximation					0.00%	0.00%	0.00%
	12 Months Avg SDA Approximation
	Avg SDA Since Cut-off Approximation					0.00%	0.00%	0.00%

	Loss Severity Approximation for Current Period
	3 Months Avg Loss Severity Approximation
	12 Months Avg Loss Severity Approximation
	Avg Loss Severity Approximation Since Cut-off

	Group 1
	Group 2
CDR by Groups					Total CDR


SDA by Groups					Total SDA


				Page 22 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Realized Loss Report for December 26, 2003 Distribution


	Realized Loss Report - Collateral

	Group 1
	Group 2

CDR Avg since Cut-Off by Groups					Total CDR Avg since Cut-Off


SDA Avg since Cut-Off by Groups					Total SDA Avg since Cut-Off


COLLATERAL REALIZED LOSS CALCULATION METHODOLOGY
Monthly Default Rate (MDR): (Beg Principal Balance of Liquidated Loans)/(Total Beg Principal Balance)
Conditional Default Rate (CDR): 1-((1-MDR)^12)
SDA Standard Default Assumption: CDR/IF(WAS<61,MIN(30,WAS)0.02,MAX(0.03,MIN(30,WAS)0.02-0.0095*(WAS-60)))
Average MDR over period between nth month and mth month (AvgMDRn,m): [(1-MDRn) * (1-MDRn+1) .......(1-MDRm)]^(1/months in period n,m)
Average CDR over period between the nth month and mth month (AvgCDRn,m): 1-((1-AvgMDRn,m)^12)
Average SDA Approximation over period between the nth month and mth month:
AvgCDRn,m/IF(Avg WASn,m<61,MIN(30,Avg WASn,m)0.02,MAX(0.03,MIN(30,Avg WASn,m)0.02-0.0095*(Avg WASn,m-60)))
Average WASn,m: (WASn + WASn+1 +.......+ WASm )/(number of months in the period n,m)
Loss Severity Approximation for current period: sum(Realized Loss Amount)/sum(Beg Principal Balance of Liquidated Loans)
Average Loss Severity Approximation over period between nth month and mth month: Avg(Loss Severityn,m)
Note: Default rates are calculated since deal issue date and include realized gains and additional realized losses and gains from prior periods.
Dates correspond to distribution dates.

				Page 23 of 25				© COPYRIGHT 2003 Deutsche Bank


	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Realized Loss Detail Report for December 26, 2003 Distribution


	Realized Loss Detail Report - Loans Liquidated During Current Distribution


SUMMARY						LOAN GROUP

Total Loan Count = 0						Loan Group 1 = Group 1 Group
Total Original Principal Balance = 0.00						Loan Group 2 = Group 2 Group
Total Prior Principal Balance = 0.00
Total Realized Loss Amount = 0.00
Total Net Liquidation Proceeds = 0.00
Note: Total Realized Loss Amount may include adjustments to loans liquidated in prior periods.

Loan Number			Original	Prior		Current	State &
&		Loan	Principal	Principal	Realized	Note	LTV at	Original	Origination
Loan Group		Status	Balance	Balance	Loss/(Gain)	Rate	Origination	Term	Date
SPACE INTENTIONALLY LEFT BLANK


					Page 24 of 25				© COPYRIGHT 2003 Deutsche Bank
	Morgan Stanley ABS Capital I Inc. 2003-HE2
	Mortgage Pass-Through Certificates

	Triggers, Adj. Rate Cert. and Miscellaneous Report for December 26, 2003 Distribution


	Triggers, Adj. Rate Cert. and Miscellaneous Report


TRIGGER EVENTS						GROUP 2	GROUP 1	TOTAL

	Has a Stepdown Date occurred?							No

	Does Trigger Event exist?							No

	(i) Does (a) equal or exceed (b)?							No
	(a) the quotient of (x) over (y)							0.46%
	(x) 60+ DQ 3Mo Avg Bal							2,731,335.40
	(y) ending Stated Prin Bal							589,471,621.74
	(b) 40% of Prior Period Senior Enhancement Perc							7.89%

	(ii) Does (x) divided by (y) exceed Loss Trigger Threshold Percentage?							No
	(x) Aggregate Realized Losses to date							0.00
	(y) Cut-off Balance							624,127,306.40

	Loss Trigger Threshold Percentage							100.00%


	Senior Enhancement Percentage (Prior)							19.73%



ADJUSTABLE RATE CERTIFICATE INFORMATION						GROUP 2	GROUP 1	TOTAL
SPACE INTENTIONALLY LEFT BLANK


ADDITIONAL INFORMATION						GROUP 2	GROUP 1	TOTAL

	Basis Risk Carry Forward Amount							0.00


				Page 25 of 25				© COPYRIGHT 2003 Deutsche Bank

MORGAN STANLEY ABS CAPITAL I INC TRUST 2003-HE2 8-K